Amortisation - What is Amortisation period?

Q: What is Amortisation period?

The amortization period is the total length of time it takes a company to pay off a loan—usually months or years. If a company chooses a short amortization period, it will pay less interest overall but must make higher payments on the principal (the original amount of the loan before interest).

Answer

The entire number of months or years it takes for a business to repay a loan is known as the amortization period. While a shorter amortization time may result in lower interest payments overall, the principle (the amount of the loan before interest) will need a bigger payment from the firm.

Amortisation - What is Amortisation period?

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