amortize

verb

Meaning

Gradually reduce or write off the cost of an asset or debt through periodic payments over a set period of time.

Examples

The business will amortize the cost of the new software license over its three-year expected lifespan.
Homeowners often amortize their mortgage payments so that the principal balance decreases steadily each month.

Synonyms: pay off, repay, liquidate, depreciate

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amortize

verb

Pronunciation: /ˈæm.ə.taɪz/

Definition

Gradually reduce or write off the cost of an asset or debt through periodic payments over a set period of time.

Examples

The business will amortize the cost of the new software license over its three-year expected lifespan.
Homeowners often amortize their mortgage payments so that the principal balance decreases steadily each month.
Accountants must amortize intangible assets like patents to reflect their declining value over time.

How to Use amortize

amortize over (prepositional phrase): To distribute a cost across a specific time frame. — "We need to amortize the loan over fifteen years."
be amortized (collocation): Passive construction used for assets or debts. — "The initial investment will be amortized over the project's life."

Synonyms of amortize

Words with a similar meaning to amortize:

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