Amortization Definition - Amortization is an accounting method that reduces the value of a premium paid for a debt instrument. Amortization · The process by which loan principal decreases over the life of an amortizing loan · Amortization (accounting), the expensing of acquisition cost. Essentially, amortization describes the process of incrementally expensing the cost of an intangible asset over the course of its useful economic life. This. Unlike depreciation, amortisation is often paid in consistent instalments – meaning that the same amount will be repaid each month or year until the debt is. Amortization is a financial term that refers to the process of gradually reducing a debt over a predetermined period through regular, scheduled payments.
Amortization definition: In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of. To amortize is to gradually pay off a debt. A bank will help you amortize a loan so that you can make a monthly payment until you've paid back the entire. Amortization is the process of paying off debt with regular payments made over time. The fixed payments cover both the principal and the interest on the. Put in plain terms, it is the process of paying off debt (your home loan) in equal installments over the term of your loan. The amortization schedule you. Amortization is a systematic accounting method that spreads the cost of intangible assets over a specific period, typically over the asset's useful lifespan. 2 senses: 1. a. the process of amortizing a debt b. the money devoted to amortizing a debt 2. (in computing the redemption. Click for more definitions. Amortization is an accounting technique used to spread payments over a set period of time. Amortization usually means paying off a loan over years, such as a home mortgage. Slide They chose a year mortgage to speed up the amortization. Lamp Pro. AMORTIZE meaning: 1. to reduce a debt or cost by paying small regular amounts: 2. to take a cost, for example the. Learn more. There are three meanings listed in OED's entry for the noun amortization. See 'Meaning & use' for definitions, usage, and quotation evidence.
Amortization has different meanings for loan payments and taxes. Amortization for loans refers to separating the payments for the loan principal and. Amortization definition: an act or instance of amortizing a debt or other obligation.. See examples of AMORTIZATION used in a sentence. Amortization is known as an accounting technique used to periodically reduce the book value of a loan or intangible asset across a set period. amortization - A process of paying off a debt over time through regular, fixed payments that include both principal and interest, or a method used in. What is Amortization Definition: This is the process of repayment of debt through periodic installments over a period of time. Description: There are very few. Amortization is a financial term that refers to the process of gradually paying off a debt over a period of time through structured payments. Amortization means a debt is being paid off by a series of payments. An amortization schedule for your car loan will show exactly how much you owe and how long. Amortize definition: to liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking. A method of progressively lowering an account balance over time is called amortization. A steadily increasing part of the debt payment is applied to the.
Amortization may refer to the liquidation of an interest-bearing debt through a series of periodic payments over a certain period. Amortization is an accounting method used to spread out the cost of both intangible and tangible assets used by a company. Depreciation is only used to. Amortization is an accounting method that spreads out the costs for the use of an asset over time. The most common example is amortizing a loan. Amortization spreads cost of intangible assets, lowering taxable income and showing asset value decrease. Amortized loans often front-load interest;. In accounting, the amortization definition refers to the practice of spreading out the expense of an asset over a period of time that aligns with the.