Regardless of the means of analysis, the schedule table contains the loan details. Loan details: With the combination of the total loan amount, the loan term, and interest rate, the borrower or the lender can perform loan amortization calculations. The details of an amortization schedule are based on the calculations performed on a loan amortization calculator.Īn amortization schedule usually consists of these metrics: Related: A Comprehensive Guide to Straight-Line Amortization What is an amortization schedule?Īn amortization schedule is a detailed table containing the periodic payment plan for a loan. In this article, we describe the meaning of an amortization schedule, and review the steps you can take to create an amortization schedule in Excel. Understanding the concept of amortization and the schedule that professionals use to determine repayment periods can help you understand how borrowing works and help you budget for large debts like mortgages and car loans. An amortization loan requires monthly payments determined by a specific type of schedule that lenders refer to as an amortization schedule. Amortization is one of the many accounting techniques financial professionals use to lower the book value of an intangible asset over time.
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