Amortization Calculator There are two general definitions of amortization The first is the systematic repayment of a loan over time The second is used in the context of business accounting and is the act of spreading the cost of an expensive and long-lived item over many periods The two are explained in more detail in the sections below
AMORTIZE Definition Meaning - Merriam-Webster The meaning of AMORTIZE is to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund
Amortization vs. Depreciation: Whats the Difference? Amortize means to gradually write off a cost over a period Depreciation is recorded to reflect that an asset is no longer worth the previous carrying cost reflected on the financial statements
What is amortization and how does it work? | Fidelity Amortization is the regular, fixed reduction in value of something over time In finance, amortization commonly comes up in 2 main ways: with debt and with assets With debt, you might pay off your mortgages, auto, personal, student, or home equity loans in predictable, reoccurring installments
Amortization Calculator | Bankrate Mortgage amortization describes the process of paying off your loan in installments over time If you’re taking out a fixed-rate mortgage, you’ll know exactly how much you’re going to pay in one
AMORTIZE Definition Meaning | Dictionary. com Amortize definition: to liquidate or extinguish (a mortgage, debt, or other obligation), especially by periodic payments to the creditor or to a sinking fund See examples of AMORTIZE used in a sentence
What is Amortization in Accounting? (How to Calculate it Correctly) - BILL If your business invests in intangible assets, you can amortize your capital expenses over time (usually the life of an asset) By using amortization, you spread the capital expenses over several years instead of claiming them all in one tax year
Amortization - Meaning, Formula, Example, Types, vs Capitalization Amortization is when an asset or a long-term liability's value or cost is gradually spread out or allocated over a specific period It aims to allocate costs fairly, accurately, and systematically so that financial records can offer a clear picture of a company's economic performance
What does amortization mean? - AccountingCoach In accounting, amortization is conceptually similar to the depreciation of a plant asset or the depletion of a natural resource Perhaps the most common example of the term amortization is the amortization schedule associated with a mortgage loan