A table showing how a loan is paid off over time — breaking each payment into its principal (balance reduction) and interest components. As the balance decreases, more of each payment goes toward principal.
How to use it
A schedule splits each periodic loan payment between interest and principal. The balance generally declines after each payment under a fully amortizing structure.
A larger loan, higher interest rate, or shorter term usually raises the required payment, all else equal.
Where this connects to Impresa
You may encounter this concept when reviewing Capital Planning. Start with the underlying inputs and check the applicable reporting period before interpreting the result.
Read the Capital Planning guideDefinitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.