how do you amortize a loan 
a loan is amortized by determining the monthly payment due over the term of the loan next you prepare an amortization schedule that clearly identifies what portion of each month s payment is attributable towards interest and what portion of each month s payment is attributable towards principal since part of the payment will theoretically be applied to the outstanding principal balance the amount of interest paid each month will decrease your payment should theoretically remain the same each month which means more of your monthly payment will apply to principal thereby paying down over time the amount you borrowed 