Like EMI Calculation, the amortization calculation show the entire life cycle of the repayment of the loan amount by the customer to the bank / financial institutes which are paid by an Equal Monthly Installments generally called EMI. In Amortization calculator, the entire life cycle details of the loan repayment is described in detail which includes the repayment of the entire loan EMI wise which includes the Principal Amount, Interest Amount from 1st EMI to last EMI.


Similarly, an amortizing bond is a bond that repays part of the principal (face value) along with the coupon payments. Compare with a sinking fund, which amortizes the total debt outstanding by repurchasing some bonds.

Each payment to the lender will consist of a portion of interest and a portion of principal. Mortgage loans are typically amortizing loans. The calculations for an amortizing loan are those of an annuity using the time value of money formulas, and can be done using an amortization calculator.

An amortizing loan should be contrasted with a bullet loan, where a large portion of the loan will be paid at the final maturity date instead of being paid down gradually over the loan's life.

An accumulated amortization loan represents the amount of amortization expense that has been claimed since the acquisition of the asset.