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

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

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

From MarketWatch ● Oct. 1, 2026

The German shipping company said Tuesday that it now expects group earnings before interest, tax, depreciation and amortization between $3.9 billion and $4 billion, up from a previous estimate of $2.7 billion to $3.7 billion.

From The Wall Street Journal ● Sep. 29, 2026

AAR expects to reach earnings before interest, taxes, depreciation and amortization, or Ebitda, margins of 19% to 20% within three to four years following the deal, people said.

From The Wall Street Journal ● Sep. 28, 2026

Entain previously expected Brazil to represent around 5% of online net gaming revenue in 2026, though its earnings before interest, taxes, depreciation and amortization contribution was forecast to be modest.

From The Wall Street Journal ● Sep. 28, 2026

Perchance we might write and ask the mining promoter what, in his belief, is the proper amortization charge in his particular mine.

From Stories from Everybody's Magazine by Various

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

Aisa attributed the 55% widening of the first-half net loss to amortizations, and what he described as a very conservative accounting policy.

From Reuters ● Jul. 29, 2021

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