Amortization is the process of paying off a loan by making regular payments. A mortgage amortization schedule shows how much you'll pay each month toward your mortgage. The schedule breaks down each payment by showing how much of the payment goes toward your principal (the amount you borrow) and toward interest (the fee a lender charges for loaning you money).  The amortization schedule also tracks how much you have left to pay on your principal after each monthly payment is complete. The schedule will show that you pay the same amount each month, but the amount you'll pay toward the principal and interest changes monthly. More of your payment goes toward interest at the beginning, and by the end, most of your payment covers the principal.