- To make mortgage payments is an example of amortize.
- To take a tax deduction for the purchase of business equipment over several years is an example of amortize.
The definition of amortize means to put money aside or to repay a debt over time or to deduct costs over time.
- to put money aside at intervals, as in a sinking fund, for gradual payment of (a debt, etc.) either at or before maturity
- Accounting to write off (expenditures) by prorating over a fixed period
- Law to reduce, transfer, or sell (property) in mortmain
Origin of amortizeMiddle English amortisen ; from extended stem of Old French amortir, to extinguish, sell in mortmain (; from Medieval Latin amortire); or ; from Medieval Latin amortizare; both Medieval Latin forms ; from Classical Latin ad, to + mors, death: see mortal
transitive verbam·or·tized, am·or·tiz·ing, am·or·tiz·es
- To liquidate (a debt, such as a mortgage) by installment payments or payment into a sinking fund.
- To write off an expenditure for (an asset, especially an intangible one, such as a patent) by prorating over a certain period, usually the expected duration of the asset's benefit.
Origin of amortizeMiddle English amortisen, to alienate in mortmain, from Old French amortir, amortiss-, from Vulgar Latin *admort&imacron;re, to deaden : Latin ad-, ad- + Latin mors, mort-, death; see mer- in Indo-European roots.
(third-person singular simple present amortizes, present participle amortizing, simple past and past participle amortized)
- To alienate (property) in mortmain.
- To wipe out (a debt, liability etc.) gradually or in installments.
- (computer science) To even out the costs of running an algorithm over many iterations, so that high-cost iterations are much less frequent than low-cost iterations, which lowers the average running time per iteration.
amortize - Legal Definition
- To gradually extinguish a debt in advance of its maturity, usually by paying regular installments in excess of the accrued interest each time a periodic interest payment is due. See also sinking fund.
- To arrange to gradually extinguish a debt.
- To apportion the initial cost of an intangible asset each year over the course of the asset’s useful life until the entire cost has been used up.