Amortization Schedule

An amortization schedule is a table that lists every payment on a loan with its interest portion, principal portion and remaining balance. The payment it shows is the principal and interest part of PITIA, so it is where the DSCR denominator starts.

On the site example, the first of 360 payments of $2,622 is about $2,344 of interest and $278 of principal. After five years the borrower has paid down only about $20,200, and the balance is roughly $354,800. After ten years it is about $325,500.

The schedule does not change the ratio, since the payment is the same every month on a fixed loan. It matters when a balloon payment or refinance is planned, because the remaining balance on the schedule is the loan the next lender has to size on the rent. An amortization calculator builds the full table.

Further reading: Amortization Schedule on Wikipedia.