Definition, Meaning & Synonyms
amortization
noun
/ˌæm.ɔːr.tɪˈzeɪ.ʃən/
Definition
The process of gradually reducing a debt through regular payments over a period of time.
Examples
- Many homeowners choose a 30-year mortgage with monthly amortization schedules.
- The company’s amortization of its loans allowed for clearer financial planning.
- Understanding amortization helps in budgeting for future expenses.
Meaning
Amortization refers to the way in which debt is paid down over time, typically involving fixed payments that cover both principal and interest.
Synonyms
- repayment
- liquidation
- debt reduction
