amortization

American  

[am-er-tuh-zay-shuhn, uh-mawr-] / ˌæm ər təˈzeɪ ʃən, əˌmɔr- /

noun

• amortizations
  plural

1. an act or instance of amortizing a debt or other obligation.

2. the sums devoted to this purpose.

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amortization British  

/ 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

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amortization Cultural  

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.

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Other Word Forms

Derived Forms

• amortizement
  noun

Inflected Forms

Nouns

• amortizations
  plural

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Etymology

Origin of amortization

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

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Explanation

Amortization means a debt is being paid off by a series of payments. An amortization schedule for your car loan will show exactly how much you owe and how long it’ll take to pay it. Amortization is fancy way to describe a payment plan: you gradually pay off a specific amount by making small payments according to a set schedule. Amortization takes place over a specific period of time. The root of amortization can be traced to the Middle English word amortisen, meaning “to kill.” In this case, it’s a debt that’s being killed off — slowly, over time. The word is often applied to car or home loans.

Example Sentences

See Examples For:

amortization amortizations

Airtel Money reported earnings before interest, taxes, depreciation and amortization of $676 million in the fiscal year ended March, and currently has 53 million monthly active users.

From The Wall Street Journal ● Oct. 9, 2026

“I didn’t even know what an amortization schedule was.”

From MarketWatch ● Oct. 1, 2026

Grindr expects the deal to immediately add to earnings before interest, taxes, depreciation, and amortization, but that it might initially dilute combined Ebitda margins as the company invests in scaling Freddie’s U.S. operations.

From The Wall Street Journal ● Sep. 30, 2026

The firm typically invests in midmarket North American companies with up to $1 billion in revenue and up to $75 million of earnings before interest, tax, depreciation and amortization, according to its website.

From The Wall Street Journal ● Sep. 29, 2026

The establishment of a sinking fund for payment of interest and amortization of these bonds frequently constitutes a very heavy drain upon the residents of the district.

From A Living from the Land by William B. Duryee

Here are some of the implications of extending mortgage amortizations.

From Reuters ● Jun. 27, 2023

Ecuador also managed to reduce certain applicable interest rates and suspend all amortizations with China Eximbank for a six-month grace period, the government said.

From Reuters ● Sep. 20, 2022

The government has already taken measures to restrain the housing market, including reducing amortizations and requiring stricter criteria for mortgage qualifications.

From BusinessWeek ● Feb. 13, 2012

Bank of Montreal’s mortgage offer is limited to 25-year amortizations to ensure consumers pay off their loans faster, the lender said.

From BusinessWeek ● Jan. 17, 2012

Distressed companies would get technical advice, loans, Government contracts and fast tax amortizations to help them diversify their products and find new markets.

From Time Magazine Archive

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Related Words

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

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