amortization

American  

[am-er-tuh-zey-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  

/ 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

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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

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

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

Maersk said it now targets underlying earnings before interest, taxes, depreciation, and amortization for the year of between $10.5 billion and $12.5 billion, ahead of its previous target range of $8 billion to $10 billion.

From The Wall Street Journal ● Aug. 13, 2026

The company reaffirmed its guidance for adjusted profit before depreciation, amortization, and impairment losses, of above 28 billion kroner.

From The Wall Street Journal ● Aug. 13, 2026

The German shipping company reported earnings before interest, taxes, depreciation and amortization of $829 million in the second quarter, compared to $820 million in the same period a year prior.

From The Wall Street Journal ● Aug. 13, 2026

Management projected an adjusted loss before interest, taxes, depreciation and amortization of between $17 million and $23 million, while Wall Street had expected a $10 million loss.

From MarketWatch ● Aug. 10, 2026

I am not sure what plan will be adopted, but I assume it will be amortization and a retirement of the stock of the original company.

From The Real Man by Francis Lynde

Pemex is the most heavily indebted oil company in the world, facing some $110.5 billion in debt and hefty amortizations in 2024.

From Reuters ● Oct. 20, 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

One thinks of time in terms of production schedules and amortizations, the other in terms of incumbencies and election days.

From Time Magazine Archive

Related Words

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