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 mortgages and car loans, an amortization schedule shows the total number of payments, the payment amount, and the remaining balance after each payment. By following this schedule, borrowers can see how their debt decreases over time and plan their finances accordingly.