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

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Other Words from amortize

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

Did You Know?

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 For Heartland Businesses, these instruments permit growth without immediately having to amortize financing costs. Fortune, "Banks and investors aren’t helping small businesses enough. Funds like these could fill the gap," 2 July 2020 The proposal would also allow Glendale to amortize the rent over the 30-year term of the extended lease so the city could start receiving rent payments immediately, Frazer said. Jeff Rumage, Milwaukee Journal Sentinel, "'The library has been held hostage': The North Shore Library is in need of repairs, but these four communities can't find a solution," 17 June 2020 What gets lost amid the forest of dollar signs is that Dak wants a four-year deal and the Cowboys want five, the better to amortize the cap hit. Kevin Sherrington, Dallas News, "A nation divided: How Cowboys QB Dak Prescott’s contract talks have driven a wedge between those in NFL circles," 26 May 2020 See More of the MC20 MC20 mules appear to take cues from the Alfa Romeo 4C, which makes sense, as this Maserati could help amortize FCA's development costs for that Alfa's carbon-fiber tub. Colin Beresford, Car and Driver, "2021 Maserati MC20 to Be Powered by All-Italian Twin-Turbo V-6," 10 Apr. 2020 If these costs are amortized over 10 launches of the SLS vehicle during the 2020, the per-flight cost would be approximately $4 billion per flight. Eric Berger, Ars Technica, "NASA does not deny the “over $2 billion” cost of a single SLS launch," 8 Nov. 2019 But an $11 billion securitized bond at an interest rate of even 3%, amortized over 20 years, would cost more than $700 million a year, by my calculations. Washington Post, "Markets Cheer a PG&E Plan; Ratepayers May Feel Differently," 7 June 2019 Finance executives have complained for years that amortizing corporate pensions can lead to confusing analyses from investors and analysts. Mark Maurer, WSJ, "CFOs Could Change Pension Accounting Style to Avoid Drag on Earnings," 26 Feb. 2020 Pricey early Tesla vehicles allowed that company to more easily amortize the high cost of developing new battery technology. Eric C. Evarts, Fortune, "Does the Hummer EV make sense? Culturally, no. Economically, absolutely," 8 Mar. 2020

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.

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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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Time Traveler for amortize

Time Traveler

The first known use of amortize was in 1830

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Last Updated

8 Jul 2020

Cite this Entry

“Amortize.” Dictionary, Merriam-Webster, Accessed 5 Aug. 2020.

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More Definitions for amortize


How to pronounce amortize (audio)

English Language Learners Definition of amortize

business : to pay money that is owed for something (such as a mortgage) by making regular payments over a long period of time
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 amortization (audio) \ noun

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More from Merriam-Webster on amortize

Spanish Central: Translation of amortize

Nglish: Translation of amortize for Spanish Speakers

Britannica English: Translation of amortize for Arabic Speakers

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