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Amortization

//ˌæmɚtəˈzeɪʃən// noun

Definitions

Noun
  1. 1
    The reduction of loan principal over a series of payments. countable, uncountable
  2. 2
    payment of an obligation in a series of installments or transfers wordnet
  3. 3
    The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset. countable, uncountable
  4. 4
    the reduction of the value of an asset by prorating its cost over a period of years wordnet

Etymology

From Middle English amortisen (“to kill, alienate in mortmain”), from Anglo-Norman amorteser, alteration of Old French amortir, from Vulgar Latin *admortire (“to kill”), from Latin ad- and mors, mortem (“death”).

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