what is monthly amortization

Monthly amortization refers to the process of paying off a debt over time in equal installments that include both principal and interest. Each repayment for an amortized loan will contain both an interest payment and payment towards the principal, which varies for each pay period. An amortization schedule helps indicate the specific amount that will be paid towards each, along with the interest and principal paid to date, and the remaining principal balance after each pay period. Basic amortization schedules do not account for extra payments, but this doesn't mean that borrowers can't pay extra