Amortization is the regular, fixed reduction in value of something over time. In finance, amortization commonly comes up in 2 main ways: with debt and with assets. With debt, you might pay off your mortgages, auto, personal, student, or home equity loans in predictable, reoccurring installments.
Amortization refers to the process of gradually paying off a debt over time through scheduled payments of principal and interest, or the systematic write-down of an intangible asset’s cost over its useful life.
Enter loan amount, interest rate, number of payments and payment frequency to calculate financial loan amortization schedules. See amortized loan balance after each payment.
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Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time.