- The definition of amortize means to put money aside or to repay a debt over time or to deduct costs over time.
- 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.
amortize definition by Webster's New World
- 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: Middle English amortisen ; from extended stem of Old French amortir, to extinguish, sell in mortmain (; from Midieval Latin amortire); or ; from Midieval Latin amortizare; both Midieval Latin forms ; from Classical Latin ad, to plush mors, death: see mortal
- amortizable adjective
amortize definition by American Heritage Dictionary
transitive verb am·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 (office equipment, for example) by prorating over a certain period.
Origin: Middle English amortisen, to alienate in mortmain, from Old French amortir, amortiss-, from Vulgar Latin *admortīre, to deaden : Latin ad-, ad- + Latin mors, mort-, death; see mer- in Indo-European roots.
- amˈor·tizˌa·ble adjective
amortize - Business Definition
amortize - Investment & Finance Definition
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.