Have you ever wondered how your mortgage company calculates what portion of your monthly payment should go to paying off the interest and how much should be applied toward the loan principal? The ...

Amortization tables work best with lump-sum loans with fixed interest rates. They also work best with loans that get paid down gradually over time, and your payment is the same dollar amount each ...

Kiah Treece is a former attorney, small business owner and personal finance coach with extensive experience in real estate and financing. Her focus is on demystifying debt to help consumers and ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas ...

Amortization is an accounting technique used to distribute asset value or loan principal over time. There are different techniques for calculating amortization and depreciation and there is guidance ...

If you have ever had to pay back a loan, you have already experienced amortization. When you get a loan, the lender spreads out your repayment amount over a series of fixed payments. Once you finish ...