Real Estate Term

Amortization

The gradual repayment of a loan's principal balance through scheduled payments.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Explanation

Early payments are interest-heavy; later payments shift toward principal. Amortization schedules show this split month-by-month.