amortize

verb am·or·tize \ ˈa-mər-ˌtīz also ə-ˈmȯr- \
Updated on: 10 Nov 2017

Definition of amortize

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

play \-ˌtī-zə-bəl\ adjective

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Recent Examples of amortize from the Web

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.

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).

Origin and Etymology of 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


AMORTIZE Defined for English Language Learners

amortize

verb

Definition of amortize for English Language Learners

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


Law Dictionary

amortize

transitive verb amor·tize \ ˈa-mər-ˌtīz, ə-ˈmȯr- \

legal Definition of amortize

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

amortization

play \ˌa-mər-tə-ˈzā-shən, ə-ˌmȯr-\ noun

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