Home · RATIOXA GLOSSARY
Annuity
Regular level payment made up of interest and principal in an amortising loan.
Simple definition
Regular level payment made up of interest and principal in an amortising loan.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
As the balance falls, the interest share declines and principal share rises.