1. the process of gradually paying off a debt through regular payments over time
Usage: finance
2. the gradual reduction of an asset’s value over time for accounting purposes
Usage: accounting

Examples

• The mortgage amortization schedule shows how much principal and interest you’ll pay each month.
• With a 30-year amortization period, most of your early payments go toward interest.
• The company used straight-line amortization to spread the software costs over five years.
• Amortization of intangible assets like patents reduces their book value annually.
• The loan’s amortization table helped her understand when she’d build equity.
• Accelerated amortization allows businesses to write off expenses more quickly.