amortization

American  

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

noun

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

• amortizement noun

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

The company also expects adjusted earnings before interest, taxes, depreciation and amortization — a measure of underlying profitability — of about $233 million, which would beat the current FactSet consensus of $184.5 million.

From MarketWatch • Apr. 15, 2026

It’s expected to generate $200 billion in 2025 earnings before interest, taxes, depreciation, and amortization, or Ebitda.

From Barron's • Apr. 14, 2026

Nispel noted that shares trade at an attractive valuation and said he expects earnings before interest, taxes, depreciation, and amortization growth to reaccelerate as the company’s efforts to cut costs take hold.

From Barron's • Apr. 13, 2026

Anthropic reports earnings before interest, taxes, depreciation and amortization.

From The Wall Street Journal • Apr. 6, 2026

In order to compare the net cost of the units of work, from an industrial point of view, it is necessary to form estimates of installation, costs of keeping in repair, interest and amortization.

From Scientific American Supplement, No. 799, April 25, 1891 by Various

Related Words

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