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

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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 Jonathan Smoke, chief economist for Cox Automotive, said car loans are amortized so that each payment covers interest and principal. Susan Tompor, USA TODAY, 12 Oct. 2024 By amortizing branding investments over several years, companies can present a more accurate picture of their financial health. Gautam Mehra, Forbes, 3 Oct. 2024 Ellis said reuse allows the company to amortize the high shipping costs across many launches. Eric Berger, Ars Technica, 4 Sep. 2024 Under current law, businesses can claim the $5,000 deduction in the year businesses start and larger expenses can be amortized over 15 tax years. Megan Poinski, Forbes, 10 Sep. 2024 See all Example Sentences for amortize 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'amortize.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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 Nov. 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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