Read to find out more about amortization, an important accounting method that accounts for the reduction in value of intangible assets over time.

An amortization schedule is a chart that tracks the falling book value of a loan or an intangible asset over time. For loans, it details each payment’s breakdown between principal and interest.

Because of the hefty price tag, most people need a mortgage. A mortgage is a type of amortized loan, which means the debt is repaid in regular installments over a specified period of time.

Lenders calculate how much interest you’ll pay with each payment in two main ways: simple or on an amortization schedule. Short-term loans often have simple interest. Larger loans, like ...

To calculate the amortization schedule and determine the loan repayment schedule, fill in the boxes given below and click 'Show Amortization Table'. The monthly amortization schedule will be displayed ...