What is an 'Amortization Schedule'
A complete table of periodic blended loan payments, showing the amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term. While each periodic payment is the same, early in the schedule, the majority of each periodic payment is interest. The percentage of each payment that goes toward interest diminishes a bit with each payment, and the percentage that goes toward principal increases. Later in the schedule, the majority of each periodic payment is put toward the principal. The last line of the schedule shows the borrower’s total interest and principal payments for the entire loan term.
BREAKING DOWN 'Amortization Schedule'
For example, the first few lines of an amortization schedule for a $250,000, 30year fixedrate mortgage with a 4.5% interest rate would look like this:
Month 
Total Payment 
Principal 
Interest 
Total Interest 
Loan Balance 
Month 1 
$1,266.71 
$329.21 
$937.50 
$937.50 
$249,670.79 
Month 2 
$1,266.71 
$330.45 
$936.27 
$1,873.77 
$249,340.34 
Month 3 
$1,266.71 
$331.69 
$935.03 
$2,808.79 
$249,008.65 
Source: Bankrate Mortgage Calculator
An amortization schedule is used for loans whose payoff date is known at the time the loan is taken out, such as a mortgage or car loan. If you know the term of a loan (30 years) and the total periodic payment ($1,266.71), an easy way to calculate an amortization schedule without using an online amortization schedule calculator is to do the following:
 Starting in month one, multiply the loan balance ($250,000) by the periodic interest rate (e.g., onetwelfth of 4.5% for a monthly mortgage payment) ($250,000 x 0.00375 = $937.50). The result will be the interest amount of the first month's payment. Subtract that amount from the periodic payment ($1,266.71  $937.50) to get the principal amount ($329.21).
 To calculate the next month’s interest and principal payments, subtract the principal payment made in month one ($329.21) from the loan balance ($250,000) to get the new loan balance ($249,670.79), and then repeat the steps above.

Negatively Amortizing Loan
A loan with a payment structure that allows for a scheduled payment ... 
Amortized Loan
A loan with scheduled periodic payments of both principal and ... 
Fully Amortizing Payment
A periodic loan payment, part of which is principal and part ... 
Deferred Interest
The amount of interest that is added to the principal balance ... 
Negative Amortization
An increase in the principal balance of a loan caused by making ... 
Accelerated Payments
A term associated with making additional unscheduled payments ...

Personal Finance
What is an Amortization Schedule?
An amortization schedule is a table that shows the amounts of principal and interest that comprise each loan payment. 
Personal Finance
Mortgage Basics: The Amortization Schedule
By Lisa SmithThe amortization schedule for a residential mortgage is a table that provides a breakdown of the schedule of payments from the loan's first required payment to the loan's final payment. ... 
Investing
Understanding the Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. 
Personal Finance
Mortgage Amortization Strategies
Should you get a 30year mortgage? A 15year one? Ways to decide which mortgage is the best fit. 
Investing
Be MortgageFree Faster
Getting rid of this debt faster has bigger benefits than you might think. 
Markets
How Interest Rates Work On A Mortgage
A stepbystep explanation of the interest calculations, mortgage types, and how the loan is eventually "retired" – which means paid off. 
Markets
Simple Interest Loans: Do They Exist?
Yes, they do. Here is what they are – and how to use them to your advantage. 
Personal Finance
Mortgage Basics: FixedRate Mortgages
By Lisa SmithA fixedrate mortgage is a loan that charges a set rate of interest that does not change throughout the life of the loan. It is the traditional loan used to finance the purchase ... 
Retirement
Schedule Loan Repayments with Excel Formulas
Calculate all the particulars of a loan using Excel, and set up a schedule of repayment for a mortgage or any other loan. 
Personal Finance
Best 3 Mortgage Calculator Websites with PMI
Learn more about all of the factors behind PMI, and discover the three best websites that provide a mortgage calculator that includes PMI.

Why does the majority of my mortgage payment start out as interest and gradually ...
When you make a mortgage payment, the amount paid is a combination of an interest charge and principal repayment. Over the ... Read Answer >> 
Why is more interest paid over the life of a loan when it is capitalized?
Learn what it means to capitalize interest on a loan. Understand why more interest is paid over the life of a loan when it ... Read Answer >> 
Which is better, a fixed or variable rate loan?
A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ... Read Answer >> 
Is there any limit on how much I can pay toward my mortgage principal every month?
I understand that I'll be paying more interest and less principal for almost the first half of my mortgage term. I'm ... Read Answer >> 
Why is there a wide margin in interest and a narrow margin in total amount paid on ...
I am refinancing my home with payoff amount of $107,000 at current rate of 6.0% to a new loan value of $134,300 at 3.125%. ... Read Answer >> 
How should you choose the amortization period for your mortgage?
Read about key considerations that homeowners should take into account before choosing the amortization period for their ... Read Answer >>