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Amortization: meaning, definitions and examples

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amortization

 

[ หŒรฆmษ”หrtษชหˆzeษชสƒษ™n ]

Noun
Context #1 | Noun

finance term

Amortization refers to the process of gradually reducing a debt or the cost of an intangible asset through regular payments over a set period. In financial terms, this typically involves paying off a loan in scheduled installments that cover both the principal and interest. It helps businesses and consumers manage their debts effectively and allows for the smooth budgeting of future cash flows.

Synonyms

depreciation, liquidation, payoff

Examples of usage

  • The bank offers an amortization schedule for the loan.
  • His mortgage has a 30-year amortization period.
  • Understanding amortization is crucial for effective financial planning.

Translations

Translations of the word "amortization" in other languages:

๐Ÿ‡ต๐Ÿ‡น amortizaรงรฃo

๐Ÿ‡ฎ๐Ÿ‡ณ เคนเฅเคฐเคพเคธ

๐Ÿ‡ฉ๐Ÿ‡ช Amortisation

๐Ÿ‡ฎ๐Ÿ‡ฉ amortisasi

๐Ÿ‡บ๐Ÿ‡ฆ ะฐะผะพั€ั‚ะธะทะฐั†ั–ั

๐Ÿ‡ต๐Ÿ‡ฑ amortyzacja

๐Ÿ‡ฏ๐Ÿ‡ต ๅ„Ÿๅด

๐Ÿ‡ซ๐Ÿ‡ท amortissement

๐Ÿ‡ช๐Ÿ‡ธ amortizaciรณn

๐Ÿ‡น๐Ÿ‡ท amortisman

๐Ÿ‡ฐ๐Ÿ‡ท ๊ฐ๊ฐ€์ƒ๊ฐ

๐Ÿ‡ธ๐Ÿ‡ฆ ุงู„ุงุณุชู‡ู„ุงูƒ

๐Ÿ‡จ๐Ÿ‡ฟ amortizace

๐Ÿ‡ธ๐Ÿ‡ฐ amortizรกcia

๐Ÿ‡จ๐Ÿ‡ณ ๆ‘Š้”€

๐Ÿ‡ธ๐Ÿ‡ฎ amortizacija

๐Ÿ‡ฎ๐Ÿ‡ธ afskrift

๐Ÿ‡ฐ๐Ÿ‡ฟ ะฐะผะพั€ั‚ะธะทะฐั†ะธั

๐Ÿ‡ฌ๐Ÿ‡ช แƒแƒ›แƒแƒ แƒขแƒ˜แƒ–แƒแƒชแƒ˜แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ amortizasiya

๐Ÿ‡ฒ๐Ÿ‡ฝ amortizaciรณn

Etymology

The term 'amortization' originates from the late Latin word 'ammortire,' which means 'to kill off.' This reflects the idea of gradually eliminating a debt or liability by breaking it down into smaller, manageable parts. The concept of amortization has roots in the financial practices that emerged during the medieval period, where various methods of debt management and repayments were developed. Over time, it has become a standard term in modern finance and accounting, applied to loans, mortgages, and intangible assets such as patents and copyrights. The practice of amortization allows businesses and individuals to plan their finances more effectively by spreading out the cost of an asset or liability over its useful life.

Word Frequency Rank

Ranked #11,761, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.