amortization

noun

am·​or·​ti·​za·​tion ˌa-mər-tə-ˈzā-shən How to pronounce amortization (audio)
 also  ə-ˌmȯr-
1
: the act or process of amortizing
2
: the result of amortizing

Examples of amortization in a Sentence

Recent Examples on the Web
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Unlike public market debt, these loans can be tailored to reflect the realities of a business’s growth curve, with covenants and amortization schedules negotiated to meet company needs. Dave Smith, Fortune, 17 Oct. 2025 Taken together, that’s a 5- to 10-point swing in costs that has brought the respectable 10 percent or 12 percent EBITDA (earnings before interest, taxes, depreciation and amortization) margin down into the doldrums of the midsingle digits. Evan Clark, Footwear News, 10 Oct. 2025 Layer on infrastructure costs, amortization, new storage mandates, refinery retrofits for changing crude blends and the lagging effects of the LCFS credit. Michael Mische, San Diego Union-Tribune, 19 Sep. 2025 With typical amortization schedules, most of the early monthly payments in long-term loans go toward paying interest, while the loan principal decreases only slightly at first. Michael Harley, Forbes.com, 26 Aug. 2025 See All Example Sentences for amortization

Word History

First Known Use

1810, in the meaning defined at sense 1

Time Traveler
The first known use of amortization was in 1810

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Cite this Entry

“Amortization.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortization. Accessed 26 Oct. 2025.

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