Amortization Schedule
An amortization schedule is a table that breaks down each scheduled payment on a note or loan into its principal and interest components. It shows exactly how much of each payment goes toward reducing the principal balance and how much covers interest charges.
In whole life banking, amortization schedules appear in two contexts:
- Promissory notes — when you deploy capital via a note receivable (for example, lending to a business or family member), the amortization schedule defines the payment stream you expect to receive. Each payment returns a portion of principal plus earned interest.
- Capital repayment modeling — when you model a repayment schedule for a policy loan, the schedule shows how your planned repayment amounts reduce the loan balance over time while accounting for capitalized interest.
Policy Stack displays amortization schedules on promissory note detail pages and within the Policy Loan Repayment Modeler. Each row shows the payment date, payment amount, principal portion, interest portion, and remaining balance.
Amortization schedules in Policy Stack are modeled values. Actual payment timing and amounts may differ from the schedule. All modeled data carries the "Modeled · Illustrative" label.
Related terms: Promissory Note, Repayment Schedule, Amortization