Amortization
Paying off a loan with equal periodic payments split between interest and principal.
Amortization is the process of repaying a loan through regular, equal payments over a set term. Each payment covers the interest due on the remaining balance first, and the rest reduces the principal. Early in the schedule most of each payment is interest; as the balance falls, more goes to principal. The payment amount is fixed by the loan amount, the periodic interest rate, and the number of payments.