C2verbUK spelling: amortiseformalmoneybusiness
US/ˈæm.ər.taɪz/
UK/ˈæm.ə.taɪz/
to pay off a debt gradually in regular payments, or to spread a cost over several years in accounts
In context
The bank will amortize the loan over thirty years with equal monthly payments.
The company plans to amortize the cost of the software over five years.
Intangible assets such as patents must be amortized in the annual report.
Words that go with amortize
verb + noun
- amortize a loanThey chose to amortize the loan over twenty years.
- amortize the costWe amortize the cost of equipment over its useful life.
- amortize a mortgageA fixed schedule will amortize the mortgage fully.
- amortize an assetAccountants amortize an asset to match its use.
verb + preposition
- amortize over five yearsThe fee is amortized over five years.
adverb + verb
- fully amortizedThe loan is fully amortized by the final payment.
Common mistakes
Incorrect:
The loan is amortized in five years.Correct: The loan is amortized over five years.