amortized Definition
gradually write off the initial cost of an asset over a period of time.
Using amortized: Examples
Take a moment to familiarize yourself with how "amortized" can be used in various situations through the following examples!
Example
The cost of the new equipment will be amortized over five years.
Example
The loan will be amortized over a period of 30 years.
Example
The company has decided to amortize the cost of the software over three years.
amortized Synonyms and Antonyms
Synonyms for amortized
- depreciate
- devalue
- write off
Antonyms for amortized
Phrases with amortized
a loan where the principal and interest are paid off in equal installments over the life of the loan
Example
The mortgage on their house is a fully amortized loan.
a table that shows the amount of each payment that goes toward interest and principal, as well as the remaining balance on a loan at any given time
Example
The bank provided us with an amortization schedule for our car loan.
the length of time over which the cost of an asset is gradually written off
Example
The amortization period for the new building is 20 years.
Origins of amortized
from French 'amortir', meaning 'to kill off'
Summary: amortized in Brief
'Amortized' [ˈæmərtaɪz] means to gradually write off the initial cost of an asset over a period of time. It is often used in finance and accounting to refer to the process of paying off a loan or depreciating an asset. Phrases like 'fully amortized loan,' 'amortization schedule,' and 'amortization period' are commonly used in this context.
