Amortization schedule

Description

An amortization schedule is a table detailing each periodic payment on an amortizing loan (typically a mortgage), as generated by an amortization calculator. Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. An amortization schedule is typically worked out taking the principal left at the end of each month, multiplying by the monthly rate and then subtracting the monthly payment.

Related formulas

Variables

AThe periodic amortization payment (dimensionless)
PThe principal amount borrowed (dimensionless)
rThe percentage rate per period divided by 100 (dimensionless)
nThe number of payments (dimensionless)