amortization

Meanings

1. The reduction of loan principal over a series of payments.
2. The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.

Etymology

From Middle English amortisen (“to kill, alienate in mortmain”), from Anglo-Norman amorteser, alteration of Old French amortir, from Vulgar Latin *admortire (“to kill”), from Latin ad- and mors, mortem (“death”).