Amortization Period

Amortization period refers to the duration or length of time over which a loan or debt is repaid through scheduled payments. It represents the time it takes to fully pay off the principal amount borrowed, along with any applicable interest and fees. During the amortization period, the borrower makes regular payments, typically in equal installments, which include both interest and a portion of the principal. As each payment is made, the outstanding balance gradually decreases until it reaches zero at the end of the amortization period.