noun

amortization

/ˌæmərˈteɪʃən/ · say it: AM·ur·TAY·shun

gradually paying off a debt through scheduled installments

In Banking & Finance

In more detail

1. (noun) the gradual process of paying off a debt, such as a loan, over time through regular payments

2. (noun) in accounting, the process of spreading the cost of an intangible asset over several years

Examples

1. The amortization schedule shows how much principal and interest you will pay each month.
2. The company recorded the amortization of the patent over 10 years.

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amortization

In more detail

Examples

Nearby in Banking & Finance