Amortization

/ˌæmərtəˈzeɪʃn/
noun

In finance, the process of gradually paying off a debt.

The homeowners set up a 30-year amortization schedule for their mortgage.
Visual representation of "amortization" - In finance, the process of gradually paying off a debt.

Often appears as...

  • amortization schedule
  • amortization period

Usage tips

Technical

noun

In business, the process of reducing a value of an asset over time.

The company considered the amount of amortization when looking at the value of their physical assets.
Visual representation of "amortization" - In business, the process of reducing a value of an asset over time.

Often appears as...

  • amortization expense
  • amortization of assets

Usage tips

Technical

noun

In computing, the ability to spread the cost of an asset over time.

The system uses a complex algorithm to calculate the amortization of cloud storage costs.
Visual representation of "amortization" - In computing, the ability to spread the cost of an asset over time.

Often appears as...

  • amortization of costs
  • amortization of cloud resources

Usage tips

Technical

noun

In law, the concept of extinguishing debt over a period of time.

The contract includes a clause about the amortization of the outstanding debt.
Visual representation of "amortization" - In law, the concept of extinguishing debt over a period of time.

Often appears as...

  • amortization of debt
  • amortization clause

Usage tips

Academic

noun

In finance, the process of gradually paying off a debt.

The homeowners set up a 30-year amortization schedule for their mortgage.
Visual representation of "amortization" - In finance, the process of gradually paying off a debt.

Often appears as...

  • amortization schedule
  • amortization period

Usage tips

Technical

noun

In business, the process of reducing a value of an asset over time.

The company considered the amount of amortization when looking at the value of their physical assets.
Visual representation of "amortization" - In business, the process of reducing a value of an asset over time.

Often appears as...

  • amortization expense
  • amortization of assets

Usage tips

Technical

noun

In computing, the ability to spread the cost of an asset over time.

The system uses a complex algorithm to calculate the amortization of cloud storage costs.
Visual representation of "amortization" - In computing, the ability to spread the cost of an asset over time.

Often appears as...

  • amortization of costs
  • amortization of cloud resources

Usage tips

Technical

noun

In law, the concept of extinguishing debt over a period of time.

The contract includes a clause about the amortization of the outstanding debt.
Visual representation of "amortization" - In law, the concept of extinguishing debt over a period of time.

Often appears as...

  • amortization of debt
  • amortization clause

Usage tips

Academic

Definition 1 of 4
Visual representation of "amortization"
LampPro Tip 1/2

Long-Term Commitment

Amortization usually means paying off a loan over years, such as a home mortgage.

Illustration for Long-Term Commitment
They chose a 15-year mortgage to speed up the amortization.
LampPro Tip 2/2

Interest Impact

Early payments mostly cover interest, not the principal loan amount.

Illustration for Interest Impact
At first, the amortization schedule showed a small reduction in principal.
LampPro Tip 1/2

Long-Term Commitment

Amortization usually means paying off a loan over years, such as a home mortgage.

Illustration for Long-Term Commitment
They chose a 15-year mortgage to speed up the amortization.
LampPro Tip 2/2

Interest Impact

Early payments mostly cover interest, not the principal loan amount.

Illustration for Interest Impact
At first, the amortization schedule showed a small reduction in principal.
LampPro Tip 1/2

Long-Term Commitment

Amortization usually means paying off a loan over years, such as a home mortgage.

Illustration for Long-Term Commitment
They chose a 15-year mortgage to speed up the amortization.
LampPro Tip 2/2

Interest Impact

Early payments mostly cover interest, not the principal loan amount.

Illustration for Interest Impact
At first, the amortization schedule showed a small reduction in principal.
Visual representation of the word "Amortization"

Never forget "Amortization"

Humans forget easily. That's why you should download WordUp: Smart reminders, word games, AI practice, and much more!

Download on the App StoreGet it on Google PlayGet it from MicrosoftGet it on AppGallery

Quote examples

Maurice Strong

Canadian Businessman

After all, sustainability means running the global environment - Earth Inc. - like a corporation: with depreciation, amortization and maintenance accounts. In other words, keeping the asset whole, rather than undermining your natural capital.
Portrait of Maurice Strong

Quote examples

Chris Cooper

American Actor

I had a couple come in with a negative amortization mortgage on a house that costs way too much relative to their income. They're consuming real estate, not investing in it.
Portrait of Chris Cooper

Quote examples

Maurice Strong

Canadian Businessman

After all, sustainability means running the global environment - Earth Inc. - like a corporation: with depreciation, amortization and maintenance accounts. In other words, keeping the asset whole, rather than undermining your natural capital.
Portrait of Maurice Strong

Quote examples

Chris Cooper

American Actor

I had a couple come in with a negative amortization mortgage on a house that costs way too much relative to their income. They're consuming real estate, not investing in it.
Portrait of Chris Cooper
Example 1 of 2
Chrome

WordUp Chrome Extension

As you browse the web instantly look up words you don’t know.

Get Chrome Extension
Back to top