amortization Definition
am·or·ti·za·tion (am′ər ti zā′s̸hən, ə môr′tə-)
noun
- an amortizing or being amortized
- money put aside for amortizing a debt, etc.
amortization Finance Definition
- An accounting technique that reduces the cost of an intangible asset, such as goodwill, by assessing the charge against income over a specific amount of time. For a tangible asset, such as machinery, the term depreciation is used.
- The act of reducing debt by making regular principal and interest payments.
amortization Usage Examples
Preposition: of
- goodwill: Earnings before taxes and amortization of goodwill totaled 384 million euros, up from 213 million in the first half of fiscal 2003-04.
- intangible: Earnings per share, before amortization of acquisition-related intangibles and restructuring charges, are expected to be $ 0.26.
Converse of object
include: Unlike mortgage payments, which include complicated yearly amortization of the principal loan amount, interest-only payments are calculated very easily.
Adjective modifier
negative: Negative amortization is the possible downside of the payment cap that keeps monthly payments from covering the cost of interest.
Modifies a noun
- calculator: A financial amortization calculator, for loans, bonds, mortgages, annuities, and investments.
- schedule: Your lender will likely give you an amortization schedule outlining your payment schedule.
- table: Use Excel to find interest rates and amortization tables.
Noun used with modifier
Browse dictionary entries near amortization
- ‹ amortise
- ‹ amorphous
- ‹ amorous
- ‹ Amorite
- ‹ amorist
- ‹ amoretto
- ‹ amoral
- ‹ amor vincit omnia
- ‹ amor patriae
- ‹ amontillado
- amortize ›
- Amos ›
- amount ›
- amount in controversy ›
- amount to ›
- amour ›
- amour-propre ›
- amoxicillin ›
- Amoy ›
- amp ›

