Amortization

The process of paying off a loan over time through monthly payments, and with each payment, the amount of the principal gets reduced.

Monthly Payment = Principal × [Monthly Interest Rate × (1 + Monthly Interest Rate)^Number of Payments] ÷ [(1 + Monthly Interest Rate)^Number of Payments - 1]

Definitions are simplified for educational purposes and may vary by context, jurisdiction, and source.

Investment clarity

Ready to Transform Your Portfolio Analysis?

Join hundreds of real estate professionals using Portfolio Projector to make smarter investment decisions.

Portfolio Projector dashboard