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

See Examples For:

amortization amortizations

Higher prices added roughly $3.6 billion to underlying earnings before interest, taxes, depreciation and amortization, or underlying Ebitda, which climbed 28% to $14.83 billion.

From The Wall Street Journal ● Jul. 29, 2026

The company raised its adjusted earnings before interest, taxes and amortization margin outlook by one percentage point to between 13.5% and 14% to reflect U.S. tariff-refund benefits.

From The Wall Street Journal ● Jul. 28, 2026

The one-off tariff refund also added around 1 percentage point to adjusted earnings before interest, taxes and amortization margin guidance, she adds.

From The Wall Street Journal ● Jul. 28, 2026

The company said Peacock’s earnings before interest, taxes, depreciation and amortization was $189 million.

From Los Angeles Times ● Jul. 23, 2026

There is every probability that the average investor never heard of a proper "amortization charge" in the management of a 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

Here are some of the implications of extending mortgage amortizations.

From Reuters ● Jun. 27, 2023

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

Distressed companies would get technical advice, loans, Government contracts and fast tax amortizations to help them diversify their products and find new markets.

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