amortization

[ am-er-tuh-zey-shuhn, uh-mawr- ]

noun

1. an act or instance of amortizing a debt or other obligation.
2. the sums devoted to this purpose.

amortization

/ əˈmɔːtɪzmənt; əˌmɔːtaɪˈzeɪʃən /

noun

1. 1. the process of amortizing a debt
   2. the money devoted to amortizing a debt
2. (in computing the redemption yield on a bond purchased at a premium) the amount that is subtracted from the annual yield Compare accumulation

amortization

1. A term that refers either to the gradual paying off of a debt in regular installments over a period of time or to the depreciation of the “book value” (that is, the standard assessed value) of an asset over a period of time.

Derived Forms

• amortizement, noun

Word History and Origins

Origin of amortization¹

First recorded in 1665–75, amortization is from the Medieval Latin word a(d)mortizātiōn- (stem of admortizātiō ). See amortize, -ation

Example Sentences

Surplus revenues enabled the amortization of its debt; and by 1852 the revenue exceeded three million dollars annually.

From Project Gutenberg

"'Amortization' is the word, Colonel," was Smith's prompt verdict after he had gone over Martin's summaries.

From Project Gutenberg

This amortization of the Republic's debt for these improvements has been going steadily forward.

From Project Gutenberg

No effort is made to levy tolls that will provide for interest charges, or for the amortization of the principal.

From Project Gutenberg

Related Words

• amount
• award
• cash
• deposit
• disbursement
• fee
• outlay
• pension
• premium
• refund
• reimbursement
• remittance
• reparation
• repayment
• restitution
• return
• reward
• royalty
• salary
• settlement