CalculateRealEstateROI

Cash Flow

Amortization

Scheduled principal repayment over the life of a loan via fixed periodic payments.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Early payments are mostly interest, later payments mostly principal — builds equity slowly at first.

Examples

  • 30-year fully amortizing loan: ~$200/mo principal in year 1, ~$1,100 in year 30.

Common mistakes

  • Confusing amortization with loan term.