Amortization and Depreciation refer to the decrease in the value of an asset over time due to use, wear and tear or obsolescence. However, amortization is for intangible assets, such as patents, loan and depreciation is for tangible assets, such as real estate. This topic will introduce you to the basic concepts of loan amortization and depreciation. The topic will also help you understand the types of amortization, loan amortization schedule, sinking fund and the different methods used for calculating depreciation.