Glossary term
Amortization Schedule
An amortization schedule is a table that lists every payment on a loan and splits each one into interest and principal, along with the remaining balance afterward. It shows exactly how the debt shrinks over time, how much interest you pay in total, and what you would still owe at any point.
Updated October 17, 2026 · Editorial Team
How Amortization Schedule works in practice
Each row of the schedule repeats the same three steps: multiply the starting balance by the periodic rate to get interest, subtract that from the payment to get principal, then subtract principal from the balance. The new balance carries into the next row. Small rounding differences are usually absorbed in the final payment.
For a $25,000 loan at 6.00% over 60 months with a $483.32 payment, row one shows $125.00 interest, $358.32 principal and a $24,641.68 balance. Row two shows $123.21 interest, $360.11 principal and $24,281.57 left. Row three: $121.41 interest, $361.91 principal, $23,919.66 left.
A schedule is handy when you want to know your payoff amount at a future date, how much interest you would save by prepaying, or how much interest you paid in a given year for tax records. Your lender's official payoff figure may differ slightly because of daily interest and payment timing.
Amortization Schedule: quick questions
How do I find my remaining balance from a schedule?
Find the row for the payment you just made and read the ending balance. Your lender's payoff quote may add a few days of interest.
Why does my lender's schedule differ slightly?
Lenders may charge interest daily, round differently, or receive payments on varying dates, so cents-level differences are normal.
Can a schedule show the effect of extra payments?
Yes. Applying an extra amount to principal in any row lowers every later balance and usually shortens the table.
Sources
- Regulation Z (Truth in Lending), 12 CFR Part 1026 — Consumer Financial Protection Bureau. Accessed October 17, 2026.
- Auto loans — Consumer Financial Protection Bureau. Accessed October 17, 2026.
We cite primary sources: regulators, central-bank data and federal agencies. Worked examples on this page are our own calculations. See our methodology.
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