amortization

[ am-er-tuh-zey-shuhn, uh-mawr- ]

noun

1. an act or instance of amortizing a debt or other obligation.
2. the sums devoted to this purpose.

amortization

/ əˈmɔːtɪzmənt; əˌmɔːtaɪˈzeɪʃən /

noun

1. 1. the process of amortizing a debt
   2. the money devoted to amortizing a debt
2. (in computing the redemption yield on a bond purchased at a premium) the amount that is subtracted from the annual yield Compare accumulation

amortization

1. A term that refers either to the gradual paying off of a debt in regular installments over a period of time or to the depreciation of the “book value” (that is, the standard assessed value) of an asset over a period of time.

Derived Forms

• amortizement, noun

Word History and Origins

Origin of amortization¹

First recorded in 1665–75, amortization is from the Medieval Latin word a(d)mortizātiōn- (stem of admortizātiō ). See amortize, -ation

Example Sentences

From 2014 to 2018, records show Ballmer reported a total of $700 million in losses from his ownership of the Clippers, almost certainly composed mainly of paper losses from amortization.

From ProPublica

The amortization benefit can turn a loss into an even larger loss, which can then be used to offset other income and save money on taxes.

From ProPublica

The tax write-off for amortization, Gilbert’s lawyer argued, is essential to all businesses, from restaurants to factories to sports franchises.

From ProPublica

However, with amortization, you can remove $120 million from your income, which means you don’t have to pay taxes on it.

From ProPublica

Before the rules around amortization were loosened in the 1990s and 2000s, the IRS often insisted that assets could only be amortized if they had a real, finite lifespan and actually lost value over time.

From ProPublica

Surplus revenues enabled the amortization of its debt; and by 1852 the revenue exceeded three million dollars annually.

From Project Gutenberg

"'Amortization' is the word, Colonel," was Smith's prompt verdict after he had gone over Martin's summaries.

From Project Gutenberg

This amortization of the Republic's debt for these improvements has been going steadily forward.

From Project Gutenberg

No effort is made to levy tolls that will provide for interest charges, or for the amortization of the principal.

From Project Gutenberg

Related Words

• amount
• award
• cash
• deposit
• disbursement
• fee
• outlay
• pension
• premium
• refund
• reimbursement
• remittance
• reparation
• repayment
• restitution
• return
• reward
• royalty
• salary
• settlement