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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Gross profit margins expanded by 130 basis points and earnings before interest, taxes, depreciation and amortization tallied 45 million euros. Evan Clark, Footwear News, 25 Sep. 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 No wonder the company reported a Q2 revenue of €47 million (about US$55 million) and an EBITDA (earnings before interest, taxes, depreciation, and amortization) of €4.5 million ($5.2 million). New Atlas, 25 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 9 Oct. 2025.

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