Which parameter in a loan amortization schedule indicates the remaining amount owed after each payment?

The remaining balance in a loan amortization schedule is crucial as it reflects the amount that the borrower still owes on the loan after each payment is made. Each payment consists of two components: principal and interest. As payments are made over time, the principal component gradually reduces the overall amount owed. Thus, the remaining balance effectively shows how much of the original loan amount is still outstanding at any point in the repayment process.

In contrast, the principal amount refers to the original sum borrowed before any payments are applied. The interest rate is used to calculate the cost of borrowing and affects how much interest accumulates over the period, but it does not represent the remaining obligation. The total loan amount is the sum borrowed, which does not change throughout the term of the loan, making it less relevant for assessing the current debt status after payments have started.