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amortization Definition

am·or·ti·za·tion (am′ər ti zās̸hən, ə môr′tə-)

noun

  1. an amortizing or being amortized
  2. money put aside for amortizing a debt, etc.

amortization Finance Definition

  1. 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.
  2. 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

  • goodwill: For the fourth quarter of 2001, SG&A expenses included $ 5.5 million of restructuring charges and $ 2.5 million of goodwill amortization.
  • loan: Interest Only Mortgage Calculator Calculate interest only mortgage payments online, create loan amortization tables and interest only.. .

Browse dictionary entries near amortization

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