Amortization
//ˌæmɚtəˈzeɪʃən// noun
noun ·Moderate ·College level
Definitions
Noun
- 1 The reduction of loan principal over a series of payments. countable, uncountable
- 2 payment of an obligation in a series of installments or transfers wordnet
- 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 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”).
Related phrases
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Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.