am·​or·​tize | \ ˈa-mər-ˌtīz How to pronounce amortize (audio) also ə-ˈmȯr- \
amortized; amortizing

Definition of amortize

transitive verb

1 : to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund amortize a loan
2 : to gradually reduce or write off the cost or value of (something, such as an asset) amortize goodwill amortize machinery

Other Words from amortize

amortizable \ ˈa-​mər-​ˌtī-​zə-​bəl How to pronounce amortize (audio) also  ə-​ˈmȯr-​ \ adjective

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When you amortize a loan, you "kill it off" gradually by paying it down in installments. This is reflected in the word's etymology. Amortize derives via Middle English and Anglo-French from Vulgar Latin admortire, meaning "to kill." The Latin noun mors ("death") is a root of admortire; it is related to our word murder, and it also gave us a word naming a kind of loan that is usually amortized: mortgage. Amortize carries a different meaning in the field of corporate finance, where it means to depreciate the cost or value of an asset (as, for example, to reduce interest revenue on that asset for tax purposes).

Examples of amortize in a Sentence

Recent Examples on the Web The carrier will also seek to amortize shares held by its treasury equal to about 2.4% of its total share capital. Rodrigo Orihuela,, 24 Feb. 2022 If one were to amortize development costs over 10 flights of the SLS rocket and Orion spacecraft, the $4.1 billion figure cited by Martin would easily double. Eric Berger, Ars Technica, 1 Mar. 2022 Called Origin, the shuttles have been designed to have a million-mile lifespan, which will help the company amortize the cost over a longer period and reduce annual expenditure, according to Mr. Nash. Nina Trentmann, WSJ, 23 Feb. 2022 The early pickup will allow the conglomerate to amortize the cost of the show over two seasons. Lesley Goldberg, The Hollywood Reporter, 15 Feb. 2022 Prop houses and studios could amortize this cost by leasing the equipment out to other productions. Matt Donnelly, Variety, 12 Nov. 2021 Retailers that own facilities generally view them as long-term investments and amortize them over thirty to fifty years. Walter Loeb, Forbes, 1 Nov. 2021 Placing some series that originate on Fox Nation on Fox Business gives the company another way to amortize costs. Brian Steinberg, Variety, 20 Sep. 2021 The upshot: Because Hulu never launched overseas, owing to its thorny multi-owner structure, Disney can’t as easily amortize Hulu content spending across a global footprint. Todd Spangler, Variety, 25 Aug. 2021 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'amortize.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of amortize

1830, in the meaning defined at sense 1

History and Etymology for amortize

Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin *admortire to kill, from Latin ad- + mort-, mors death — more at murder

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The first known use of amortize was in 1830

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Last Updated

4 Apr 2022

Cite this Entry

“Amortize.” Dictionary, Merriam-Webster, Accessed 22 May. 2022.

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More Definitions for amortize


transitive verb
amor·​tize | \ ˈa-mər-ˌtīz, ə-ˈmȯr- How to pronounce amortize (audio) \
amortized; amortizing

Legal Definition of amortize

: to reduce (an amount) gradually: as
a : to pay off (as a loan) gradually usually by periodic payments of principal and interest or payments to a sinking fund
b : to gradually reduce the cost of (as an asset) especially for tax purposes by making periodic charges to income over a time span amortize the machinery over five years — see also depreciation — compare capitalize, deduct

Other Words from amortize

amortizable adjective
amortization \ ˌa-​mər-​tə-​ˈzā-​shən, ə-​ˌmȯr-​ How to pronounce amortize (audio) \ noun

More from Merriam-Webster on amortize

Nglish: Translation of amortize for Spanish Speakers

Britannica English: Translation of amortize for Arabic Speakers


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