Avdragsplan

Avdragsplan, or amortization plan, is a schedule for repaying a debt that specifies how and when payments are made over the term of the loan. The plan shows the amount of each payment, how much goes toward interest and how much reduces the principal, and the remaining loan balance after each payment. It is a tool for borrowers to forecast liquidity and for lenders to illustrate the total cost of the loan.

A typical avdragsplan includes the original loan amount, the interest rate, the loan term, the payment frequency, and a payment-by-payment breakdown that lists the date, the principal portion, the interest portion, and the new balance after each payment.

There are different forms. In Sweden, common types are annuitetslån (fixed total payment) and amorteringslån (constant principal portion). In an annuitetslån, each payment is the same size; in an amorteringslån, the principal portion is fixed and the payment decreases over time as interest falls. Some plans allow extra payments or adjustments if the rate changes or if the borrower prepays.

The plan is usually provided by lenders as part of a loan offer or agreement. It helps borrowers compare offers and plan their finances, and it can be updated if the loan terms change, for example after a refinance. In many jurisdictions, clear amortization information is required to help consumers understand the total cost of credit.