An amortization schedule is a table that outlines each payment on a loan over time. It details how much of each payment goes toward the principal amount borrowed and how much goes toward interest. This helps borrowers understand their repayment process and track their progress in paying off the loan. Typically used for loans like mortgages or car loans, an amortization schedule shows the remaining balance after each payment. It can help borrowers plan their finances by providing a clear picture of when the loan will be fully paid off and how much interest they will pay in total over the life of the loan.