amortize

American  

[am-er-tahyz, uh-mawr-tahyz] / ˈæm ərˌtaɪz, əˈmɔr taɪz /

especially British, amortise

verb (used with object)

amortized, amortizing

1. Finance.

   1. to liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking fund.

   2. to write off a cost of (an asset) gradually.

2. Old English Law. to convey to a corporation or church group; alienate in mortmain.

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amortize British  

/ əˈmɔːtaɪz /

verb

1. finance to liquidate (a debt, mortgage, etc) by instalment payments or by periodic transfers to a sinking fund

2. to write off (a wasting asset) by annual transfers to a sinking fund

3. property law (formerly) to transfer (lands, etc) in mortmain

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Other Word Forms

• amortizable adjective
• nonamortizable adjective
• unamortized adjective

Etymology

Origin of amortize

1375–1425; Middle English amortisen < Anglo-French, Old French amortiss-, long stem of amortir literally, to kill, die < Vulgar Latin *a ( d ) mortīre (derivative of Latin mors, stem mort- death, with ad- ad- ); -ize later replacing -is ( s )-, probably by association with Anglo-Latin a ( d ) mortizāre

Explanation

To amortize is to gradually pay off a debt. A bank will help you amortize a loan so that you can make a monthly payment until you've paid back the entire amount. A simple way to understand the verb amortize is "make monthly payments on a debt." More specifically, to amortize is to pay down the total amount of the loan a little bit at a time, rather than only covering fees or interest on top of the loan amount. Someone whose bank amortizes their car loan makes a payment each month, gradually reducing the total amount they owe. Amortize stems from a Vulgar Latin word meaning "extinguish."

Example Sentences

Warner’s $252-million quarterly loss was a byproduct of a $1.3 billion write-down as Warner continues to amortize restructuring charges stemming from the 2022 merger with Zaslav’s Discovery.

From Los Angeles Times • Feb. 26, 2026

They say we need massive amounts of energy, we need huge amounts of data, we need the smartest kids around, and then we need the scale to amortize the massive investment that we are making.

From The Wall Street Journal • Feb. 21, 2026

And Musk’s 2018 pay award was valued at about $56 billion, or $8 billion a year, if investors amortize it over seven years.

From Barron's • Nov. 7, 2025

Banks offering these products have reported that about C$260 billion of these amortize after 35 years, he added.

From Reuters • Sep. 7, 2023

Clearly, Russia is worried about its surplus and wishes to amortize it through enhanced exports.

From Russian Roulette: Russia's Economy in Putin's Era by Vaknin, Samuel