amortize

verb
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 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 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 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 Under the current tax code, music creators are required to amortize production expenses for tax purposes over the economic life of a sound recording, a period that usually ranges between three and four years. Chris Eggertsen, Billboard, 16 Mar. 2021 The trader can expense (amortize) up to $5,000 in the first year and the balance over 15 years. Robert Green, Forbes, 2 Mar. 2021

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

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The first known use of amortize was in 1830

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Dictionary Entries Near amortize

amortization

amortize

amortizement

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Last Updated

7 Sep 2021

Cite this Entry

“Amortize.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortize. Accessed 26 Sep. 2021.

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More Definitions for amortize

amortize

verb

English Language Learners Definition of amortize

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

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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