- The repayment of a loan by installments. The New York Times Financial Glossary
* * *1. [countable, uncountable] ACCOUNTING when an asset is amortized:
• The law provides for five-year amortization of the first $5 million of acquisition expenses.
• The drop in operating profit reflected a rise in amortizations, following an increase in industrial investments.2. [uncountable] FINANCE when repayments are made on a loan:
• The lenders will extend the term of the loan and reduce the amortization of that debt.
• He asked for a change in the amortization schedule, with interest payments spread over a longer period.— see also earnings before interest, tax, depreciation and amortization
* * *The reduction of principal or debt at regular intervals. This can be achieved via a purchase or sinking fund. The term is also used to describe the depreciation of fixed assets; the opposite of accretion. ► See also Depreciation.
* * *amortize UK US (UK also amortise) /əˈmɔːtaɪz/ verb [T]► ACCOUNTING, TAX to spread the value or cost of an asset in accounts over a number of years: amortize sth over sth »
Companies use depreciation to amortize fixed assets over their usable life.»
The value of the machinery is amortized over its estimated useful life.► to reduce a debt by paying small regular amounts: »
When asked what tolls would be required to amortize the payments under the contracts, he said the figures were astronomical.amortization (UK also amortisation) /əˌmɔːtɪˈzeɪʃən/ US /æmˌɔːrṱə-/ noun [U]► »
Costs before depreciation and amortisation jumped 45% in a single year.
Financial and business terms. 2012.