There are two general definitions of amortization. The first is the systematic repayment of a loan over time. The second is used in the context of business accounting and is the act of spreading the cost of …

The meaning of AMORTIZE is to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund.

Nov 8, 2025 · Amortize means to gradually write off a cost over a period. Depreciation is recorded to reflect that an asset is no longer worth the previous carrying cost reflected on the financial statements.

AMORTIZE meaning: 1. to reduce a debt or cost by paying small regular amounts: 2. to take a cost, for example the…. Learn more.

Mortgage amortization describes the process of paying off your loan in installments over time. If you’re taking out a fixed-rate mortgage, you’ll know exactly how much you’re going to pay in one...

to liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking fund. to write off a cost of (an asset) gradually. Old English Law. to convey to …

3 days ago · Learn what amortization means, how it affects loan payments, and how it helps you compare terms for a smarter payoff plan.

Oct 17, 2025 · Amortization is the regular, fixed reduction in value of something over time. In finance, amortization commonly comes up in 2 main ways: with debt and with assets. With debt, you might …

In accounting, amortization is conceptually similar to the depreciation of a plant asset or the depletion of a natural resource. Perhaps the most common example of the term amortization is the amortization …

Dec 4, 2025 · Loan amortization refers to the repayment schedule for a loan, including a breakdown of interest and principal payments.