Meaning & use
amortization
The gradual repayment of a debt through regular payments over time, or the spreading of an asset's cost over its useful life.
See it in a sentence
Their monthly mortgage payment covers both interest and amortization of the loan balance.
The company spread the amortization of the patent's cost over ten years.
A note on using this word
Similar to depreciation, but 'amortization' usually applies to loans and intangible assets like patents or loans.
Words with a similar meaning
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