[am-er-tuh-zey-shuh n, uh-mawr-]


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

Origin of amortization

First recorded in 1665–75, amortization is from the Medieval Latin word a(d)mortizātiōn- (stem of admortizātiō). See amortize, -ation Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019

Examples from the Web for amortization

Historical Examples of amortization

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

    The Panama Canal

    Frederic Jennings Haskin

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

    The Panama Canal

    Frederic Jennings Haskin

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

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

    The Real Man

    Francis Lynde

British Dictionary definitions for amortization




  1. the process of amortizing a debt
  2. the money devoted to amortizing a debt
(in computing the redemption yield on a bond purchased at a premium) the amount that is subtracted from the annual yieldCompare accumulation (def. 3b)
Derived Formsamortizement or amortisement (əˈmɔːtɪzmənt), noun
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Word Origin and History for amortization

1670s, in reference to lands given to religious orders, from Medieval Latin amortizationem (nominative amortizatio), noun of action from past participle stem of amortizare (see amortize). Of debts, from 1824.

Online Etymology Dictionary, © 2010 Douglas Harper

Culture definitions for amortization


[(am-uhr-tuh-zay-shuhn, uh-mawr-tuh-zay-shuhn)]

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.

The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.