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What is a loan amortization table?

An amortization table describes the repayment of a loan to the lender with interest. Based on the loan's amount, interest rate, and length, a monthly payment is determined that the must be paid to the lender. Each payment includes a portion that is interest while the rest is applied to the balance. The amount of interest paid each time is based on the remaining balance of the loan. Payments continue until the remaining balance of the loan is zero.


When do you use an amortization table?

An amortization table can be used anytime money is borrowed from a lender. The most common uses of an amortization table are for mortgages or car loans

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