FunTester

Sep 21, 2026 · R&D Management

Technical Debt Economics: Principal, Interest, and Amortization for Engineering Teams

This article reframes technical debt as a financial instrument with principal, interest rates, and amortization schedules, providing a framework for engineering teams to quantify hidden costs, categorize debt types, maintain a shared debt ledger, and negotiate repayment plans with stakeholders to sustain delivery velocity.