An amortization schedule is a table that outlines the repayment plan for a loan, showing how much of each payment goes toward the principal and how much goes toward interest. This schedule helps borrowers understand their payment structure over time, making it easier to track how much they owe. Typically, an amortization schedule is used for loans like mortgages or car loans. Each row in the schedule represents a payment period, detailing the remaining balance after each payment. This transparency allows borrowers to see how their debt decreases over time, aiding in financial planning and management.