amortization

noun

am·​or·​ti·​za·​tion ˌa-mər-tə-ˈzā-shən How to pronounce amortization (audio)
 also  ə-ˌmȯr-
1
: the act or process of amortizing
2
: the result of amortizing

Examples of amortization 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.
Adjusted earnings before interest, taxes, depreciation and amortization for the second-quarter were a record $2.12 billion, ahead of the $2.09 billion that analysts had forecast. Bloomberg, Mercury News, 6 Aug. 2025 Payments were computed using a standard amortization formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]. Diana Leyva, Nashville Tennessean, 1 Aug. 2025 The analyst also expects upside to Peloton’s fiscal 2026 earnings before interest, taxes, depreciation and amortization, or EBITDA, expectations from further top-line growth and cost-cutting measures. Lisa Kailai Han, CNBC, 30 July 2025 Earnings before interest, tax and amortization were €246M, which was lower than 2024 but in line with expectations. Jesse Whittock, Deadline, 29 July 2025 See All Example Sentences for amortization

Word History

First Known Use

1810, in the meaning defined at sense 1

Time Traveler
The first known use of amortization was in 1810

Browse Nearby Words

Cite this Entry

“Amortization.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortization. Accessed 19 Aug. 2025.

More from Merriam-Webster on amortization

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!