Definitions

1. noun

The process of gradually paying off a debt, especially a mortgage, over time through regular payments.

“The couple’s monthly mortgage payments included a significant amount of amortization, which would eventually pay off the entire loan.”

2. noun

A reduction in value over time, especially of an asset or investment.

“The company’s stock price experienced significant amortization due to declining sales and increased competition.”

3. noun

A system or method of distributing or allocating costs or expenses over a period of time.

“The accounting firm implemented an amortization system to calculate the depreciation of company assets over several years.”

4. verb

To reduce the value or cost of something over time, especially by spreading expenses over a period.

“The company amortized the cost of its new equipment by spreading it over several years in their financial reports.”