Amortization is a financial concept used in loans, like mortgages, to spread out the repayment of a loan over time. It involves making regular payments that cover both the loan's principal (the amount borrowed) and the interest (the cost of borrowing). Over time, these payments gradually reduce the outstanding balance of the loan until it's fully paid off.

The calculator helps you visualize and understand how your loan payments are distributed over time, enabling you to make informed financial decisions. It's a valuable tool for planning and managing your loans effectively.