What is an amortization schedule?

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An amortization schedule is a table that shows each loan payment broken into principal and interest and tracks the remaining loan balance after every payment. This helps you see exactly how your payments reduce the loan over time and how the interest portion changes—early payments are mostly interest, while later payments apply more to principal as the balance drops. Some versions also include cumulative totals or escrow items, but the main idea is the step-by-step breakdown of payment, principal reduction, and remaining balance. It’s not a list of future financing options, a schedule of closing costs, or a chart of property tax trends, which are different concepts.