What context can I use each word in?
Learn when and how to use these words with these examples!
amortization
Example
The mortgage loan is set up with a 30-year amortization schedule. [amortization: noun]
Example
Each monthly payment includes both interest and principal, which helps to amortize the loan. [amortize: verb]
repayment
Example
The borrower must make regular payments to ensure timely repayment of the loan. [repayment: noun]
Example
I will repay you the money I borrowed as soon as possible. [repay: verb]
Good things to know
Which word is more common?
Repayment is more commonly used than amortization in everyday language, as it is a more general term that covers a wider range of financial obligations. Amortization is a more technical term that is often used in specific financial contexts, such as mortgages or loans.
What’s the difference in the tone of formality between amortization and repayment?
Amortization is a more formal term that is typically used in professional or technical settings, while repayment is more versatile and can be used in both formal and informal contexts.
