Meaning & use
amortization schedule
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Meaning
nouncountablefinance
A table showing each loan payment and how much of it goes to interest and how much to the amount borrowed.
Grammar: Countable: say 'an amortization schedule' or 'amortization schedules'; it names one document.
Patterns
- an amortization schedule for a loan
- set up an amortization schedule
- according to the amortization schedule
The bank gave us an amortization schedule with our mortgage.
According to the amortization schedule, most of our early payments go toward interest.
She built an amortization schedule in a spreadsheet to compare two car loans.
Word forms
| plural | amortization schedules |
|---|
Common combinations
- loan amortization schedule
- The loan amortization schedule showed the balance falling slowly at first.
- monthly amortization schedule
- A monthly amortization schedule lists 360 payments for a 30-year mortgage.
- follow an amortization schedule
- If you follow the amortization schedule, the loan is paid off on time.
- amortization schedule for a mortgage
- He printed the amortization schedule for a mortgage and studied the interest totals.
- build an amortization schedule
- You can build an amortization schedule in minutes with the right formula.
Synonyms and how they differ
- repayment plan
- A repayment plan is any plan for paying money back, while an amortization schedule specifically splits each payment into interest and principal.
- payment table
- A payment table is a looser everyday term for the same kind of list and is fine in casual speech, but it is not the standard finance term.
Word family
- amortize verb
- to pay off a debt gradually in regular payments
- amortization noun
- the process of paying off a loan in regular installments
- amortizable adjective
- able to be paid off or written off gradually over time
Commonly confused: amortization schedule or depreciation schedule?
amortization schedule vs depreciation schedule
A depreciation schedule tracks how an asset loses value over time for accounting, while an amortization schedule tracks loan payments or the write-off of an intangible asset.
Practice
Which sentence uses 'amortization schedule' correctly?
Choose one answer.
An amortization schedule is a payment-by-payment table, so option A fits. Option C describes the interest rate, and option D describes a date, neither of which is a schedule.
Make it your own
Write a sentence using “amortization schedule”, then check it and compare it with the examples above.