Amortization Meaning in English
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Definition
Amortization is the process of gradually paying off a debt over time through regular payments, or spreading the cost of an asset over a period for accounting purposes.
Usage & Nuances
Common in finance and accounting, 'amortization' mainly refers to loans (gradual repayment) or intangible assets (cost allocation over time). Don't confuse with 'depreciation' (for tangible assets). Often encountered in phrases like 'amortization schedule' or 'loan amortization'.
Example Sentences
The amortization of the loan will take ten years.
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We use amortization to spread the expense over several years.
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The company records amortization every month for its patents.
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If you check your mortgage statement, you'll see a breakdown of the amortization.
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Thanks to amortization, we make the same payment on our car loan every month.
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Our accountant explained how amortization lowers our company’s taxable income every year.
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