amortize

verb

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

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
amortizable
ˈa-mər-ˌtī-zə-bəl How to pronounce amortize (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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Because of its enormous size and widely varying power and off-road equipment in addition to passenger vehicles, Honda plans to amortize the cost of these solid-state cells over millions of units. Jake Lingeman, Newsweek, 25 Nov. 2024 These brands have the advantage of scale and the ability to amortize their investments into digital resources over a large customer base. George Davis, Forbes, 31 Oct. 2024 Teams pay out bonuses coupled with lower base salaries to start the deals, and the bonuses are amortized through the life of the contract for cap purposes. Tim Kawakami, The Athletic, 23 Aug. 2024 The group says the price tag can be paid through a municipal revenue bond that would be amortized over 30 years. Rob Nikolewski, San Diego Union-Tribune, 19 Feb. 2024 See all Example Sentences for amortize 

Word History

Etymology

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

First Known Use

1830, in the meaning defined at sense 1

Time Traveler
The first known use of amortize was in 1830

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Dictionary Entries Near amortize

Cite this Entry

“Amortize.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortize. Accessed 4 Dec. 2024.

Legal Definition

amortize

transitive verb
amortized; amortizing
: 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
amortizable adjective

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