This is often calculated as the outstanding loan balance multiplied by the interest rate attributable to this period's portion of the rate. The interest portion is the amount of the payment that gets applied as interest expense.Though you usually calculate the payment amount before calculating interest and principal, payment is equal to the sum of principal and interest. This will often remain constant over the term of the loan. The payment is the monthly obligation calculated above.This amount is either the original amount of the loan or the amount carried over from the prior month (last month's ending loan balance equals this month's beginning loan balance). The beginning loan balance is the amount of debt owed at the beginning of the period.This may either be shown as a payment number (i.e., Payment 1, Payment 2, etc.) or a date (i.e.
This column helps a borrower and lender understand which payments will be broken down in what ways. However, each row on an amortization represents a payment so if a loan is due bi-weekly or quarterly, the period will be the same.
