Amortization is the gradual reduction of a debt over a given period.
This is how you can figure out how much you are really spending over the course of a loan. It also shows how much of your payment is actually going towards principal and what’s being wasted on interest.
An amortization calculator will amortize (show the reduction) your debt (such as a mortgage) and display your payment breakdown of interest paid, principal paid, and loan balance over the life of the loan.