What does amortization mean?

Looking for the meaning or definition of the word amortization? Here's what it means.

Noun The reduction of loan principal over a series of payments. The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset. Find more words! 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However, from 2000 to 2003, the annual disbursements were higher than the amortization. The advantage of accelerated amortization for tax purposes lies in the deferment of taxes rather than in their reduction. Mr Edmonds estimates that three or four times earnings before interest, taxes, depreciation and amortization, or EBITDA, is typical. A prolonged amortization phase results in a less than optimum neuromuscular efficiency from loss of elastic potential energy. The simplest method of allowing for the costs of capital services is to calculate the annual amortization of the building over its expected life. See Also What is another word for amortization? Sentences with the word amortization Words that rhyme with amortization What is the plural of amortization? What is the adjective for amortization? What is the noun for amortization? Translations for amortization Nearby Definitions amortizable amortisseur windings amortisseur winding amortising amortises amortised amortizations amortize amortized amortizement amortizes amortizing 12-letter Words Starting With a am amo amor amort amorti amortiz amortiza amortizat amortizati amortizatio