What is the term for a schedule of periodic payments on a note?

The term that refers to a schedule of periodic payments on a note is the amortization schedule. This schedule provides a detailed breakdown of each payment over the term of the note, showing how much of each payment goes towards interest and how much goes towards reducing the principal balance.

An amortization schedule is essential in financial planning and lending because it clearly lays out how the borrower’s debt decreases over time, illustrating the total interest paid and the remaining balance after each payment. It helps both lenders and borrowers understand the implications of the loan over its term, including how long it will take to pay off the principal and the cumulative interest costs involved.

In contrast, other options like a payment plan might refer to the overall strategy for repayment without detailing the specific breakdown of interest and principal. A cash flow statement provides an overview of cash inflows and outflows over a period but does not focus specifically on the elements of a loan repayment. An interest schedule would typically show just the interest calculations associated with a loan but wouldn't provide the comprehensive view of periodic payments that an amortization schedule does.