amortization
3 synonyms and 0 antonyms for amortization, grouped by meaning and by how common each one is.
Noun — The process of paying off a debt in regular instalments over a set period, so that each payment covers interest and part of the principal until the balance reaches zero.
Synonyms
Less common
Still standard English, but they carry more weight.
Rare, literary or technical
Precise, but they will stand out — check the sense before using one.
Synonyms by Meaning
1. noun
The process of paying off a debt in regular instalments over a set period, so that each payment covers interest and part of the principal until the balance reaches zero.
“Ask the lender for an amortization schedule so you can see how much of each payment is interest.”
2. noun accounting
In accounting, the spreading of the cost of an intangible asset, such as a patent or software licence, across the years in which it is expected to be useful.
“Amortization of the acquired trademarks reduced reported profit by $4 million.”
How to Use Amortization
The word patterns that sound natural to a native speaker.
Formal. American spelling; British English usually writes amortisation.
Etymology
From Old French amortir 'to deaden, extinguish', ultimately from Latin ad- 'to' + mors, mortem 'death'.
Full origin of amortization →Frequently Asked Questions
What is the difference between amortization and depreciation?
They are the same idea applied to different assets. Depreciation spreads the cost of tangible things such as vehicles and machinery; amortization spreads the cost of intangible things such as patents, goodwill and software. Both reduce reported profit without any cash leaving the business.
What is an amortization schedule?
It is a table showing every scheduled payment on a loan, split into the interest portion and the principal portion, with the remaining balance after each one. Early payments are mostly interest; later ones are mostly principal.
Is amortization spelled amortisation in British English?
Yes, British writing generally uses amortisation, though the -z- form is also accepted in the UK. The word is far more common in American finance, so the -z- spelling dominates online.