Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives.

For example, a four-year car loan would have 48 payments (four years × 12 months). Loan Amortization Schedule vs. Loan Term Though related, loan amortization schedule and loan term are not the same.

Estimate your monthly loan repayments, interest rate, and payoff date Fact checked by Rebecca McClay Amortization is an ...

When applied to loans, amortization involves repaying both principal and interest through scheduled payments over a set ...