amortize
amortize Lexical Profile
amortize Game Scores & Validity
• verb
To gradually write off the initial cost of an intangible asset over a fixed period of time.
"The pharmaceutical company decided to amortize the cost of acquiring the new patent over ten years."
To reduce or pay off a debt with regular scheduled payments of principal and interest over a specified period.
"Most homeowners choose to amortize their mortgage over thirty years to keep monthly payments affordable."
Word Nuance & Usage
In accounting, 'amortize' specifically applies to writing off the cost of intangible assets (such as patents or goodwill) or paying down a loan, whereas 'depreciate' is used for tangible physical assets (such as machinery or buildings).
• Nearby Words
Word Origin & Etymology
Borrowed from Old French 'amortir' (to deaden or extinguish a debt), from Vulgar Latin '*admortire' (to kill off), formed from Latin 'ad-' (to) and 'mors' (death), referring to 'killing off' a financial obligation over time.