There are two general definitions of amortization. The first is the systematic repayment of a loan over time. The meaning of amortize is to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund.
Mortgage amortization describes the process of paying off your loan in installments over time. Oct 17, 2025amortization is the regular, fixed reduction in value of something over time. In finance, amortization commonly comes up in 2 main ways:
Jan 23, 2026loan amortization refers to the schedule over which payments are calculated, while loan term is the period before the loan is due. For example, a loan may be amortized over 30 years but. In finance, if you amortize a debt, you pay it back in regular payments.
Business expenses had to be amortized over a 60 month period. Amortize something to pay back a debt by making small regular payments over a period of time. Definition of amortize verb in oxford advanced learner's dictionary.
In accounting, amortization is conceptually similar to the depreciation of a plant asset or the depletion of a natural resource. Perhaps the most common example of the term amortization is the amortization.
