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

Adjusted earnings before interest, taxes, depreciation and amortization are now expected at 8.1 billion to 8.2 billion pounds compared with 8.2 billion to 8.3 billion pounds previously.

From The Wall Street Journal • Jun. 29, 2026

The car-rental company said Wednesday it expects adjusted corporate earnings before interest, taxes, depreciation and amortization will be between $50 million and $80 million.

From The Wall Street Journal • Jun. 24, 2026

Hertz said Wednesday that it projects second-quarter adjusted corporate earnings before interest, taxes, depreciation and amortization of $50 million to $80 million, toward the lower end of the company’s expected range.

From Barron's • Jun. 24, 2026

You can make your own P&I comparisons for different loan amounts, terms and interest rates, and look at the full amortization schedules using NerdWallet’s Mortgage Calculator.

From MarketWatch • Jun. 23, 2026

Likewise, the funds required for the amortization of bond issues are often obtained from general taxation although vehicle license fees are sometimes used for that purpose.

From American Rural Highways by Agg, T. R. (Thomas Radford)

Related Words

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