What is the term for the calculation showing required payments to pay off a debt over time?

Amortization refers to the process of calculating the required periodic payments to gradually pay off a debt over a specified period. This concept is particularly important in the context of mortgages and loans, where borrowers make regular payments that include both interest and principal.

As the loan is repaid, a part of the payment goes toward interest, and the remaining amount reduces the principal balance. The amortization schedule details this breakdown, helping borrowers understand how their payments will affect the outstanding balance over time. This systematic payment structure is crucial for both the lender, who receives consistent payments, and the borrower, who benefits from the clarity of how their debt is decreasing.

In contrast, capitalization refers to the process of determining the value of an asset or a company based on future expected returns, while depreciation is an accounting method for allocating the cost of a tangible asset over time. Appreciation signifies an increase in the value of an asset over time. These concepts, while important in their own rights, do not relate to the structured repayment of debt as amortization does.