Definition of amortize in English:

amortize

(also amortise)

verb

[WITH OBJECT]
  • 1Gradually write off the initial cost of (an asset) over a period.

    ‘the vessel's owners could not amortize her high capital costs’
    • ‘A robot helping in a manufacturing production run may last only 6 months, not enough time to amortize a big investment in engineering.’
    • ‘Speed was important because the ‘H’ body models are scheduled for replacement in eighteen months and that meant amortizing the tooling costs was a major consideration in making the deal pay off.’
    • ‘We may define the going rate of interest as the rate at which the market price of the bond is amortized by the stream of interest payments plus the payment of face value at maturity.’
    • ‘However, the cost of infrastructure is amortised over a longer period that reflects the long lives of social infrastructure.’
    • ‘The beauty of the carrier model is that it amortizes investment over many millions of users over a long period of time.’
    • ‘A newer trailer allows you to amortize the initial cost over more years and maximize the benefits of the features you request.’
    • ‘To amortize that investment, it is desirable that a given facility be designed to serve for several ecosystem generations.’
    • ‘In contrast, he argues, purchase accounting is more appropriate, because an acquirer must write up the assets it buys and amortize for a period of not more than 20 years the premium it pays in excess of the target's book value.’
    • ‘The architecture should pay for itself after the first couple of years, during which time the capital costs will be amortized, he says.’
    • ‘Product lines are a wasting asset that should be amortized on a straight-line basis over their useful lives.’
    • ‘Currently, companies that hedge an interest-rate or price risk with an option contract can amortize the cost of the option (the premium) over the life of the contract.’
    • ‘Its aim was to repurpose content and, in so doing, to amortize the cost of news gathering and talent across 24 hours of cable television as well as the existing 20 hours (roughly speaking) of broadcast time.’
    • ‘Because much of the outlay pays for property, plant, and equipment, most food chains amortize this cost over several years.’
    • ‘The insurer said the new method reduced its life insurance reserve and allows its policy acquisition costs to be amortised on a more level basis over the life of the insurance contracts.’
    • ‘Special privileges, such as monopolies on the local production and sale of Venetian style glass, helped glassmakers to amortize the high cost of setting up a new factory and importing skilled workers.’
    • ‘The audited financial statements from the two independent branches were received, but Bill failed to notice that they hadn't amortized capital assets, as was by then required under the funding agency's policies.’
    • ‘I said that over, say, a 20-year period we should amortise the cost of that - $174 million, I think it was - in order for us to see that figure.’
    • ‘New media products offer one way of amortizing the investment in so much news coverage.’
    • ‘In the past, companies could lump both into goodwill, which was then amortized over a period of up to 40 years.’
    • ‘This configuration still allowed test equipment costs to be amortized over many subscriber loops and made it relatively economical to support dedicated, powerful and expensive test equipment.’
    1. 1.1 Reduce or pay off (a debt) with regular payments.
      ‘eighty per cent of the proceeds has been used to amortize the public debt’
      • ‘The increase in value had to be expressed in the accounts on both the asset and the liability side, and both needed to be amortised at an equal rate.’
      • ‘To illustrate, payments on the national debt, unlike a home mortgage payment that is designed to reduce the principal, are not amortized.’
      • ‘In the short run, it is made to appear sustainable in some degree by inflation, which causes a country to amortize its debts via interest rates.’
      • ‘The Church was also instrumental in dealing with the financial crisis when the Constituent Assembly nationalized church property (approximately 10 per cent of French land), to be sold as a way of amortizing the state debt.’
      • ‘The following year a sinking fund was established in an effort to amortize the debt.’
      • ‘The lender "terms out" the carryover debt that is not cleaned up, but the cash flow from operations is insufficient to amortize the debt.’
      • ‘If any licensing is done in a particular financial year, the fees are amortised over the lifetime of the collaboration.’
      • ‘The math is both simple and complex; calculating the periodic interest is simple but finding the exact periodic payment to amortize the debt is complex.’
      • ‘I couldn't even get an assessment from Revenue Canada for three months and then I couldn't amortise my loans until I paid an interest-only payment of $715 bucks (I don't have any income at all - no savings, no partner, nothing).’
      lessen, make less, make smaller, lower, bring down, decrease, turn down, diminish, take the edge off, minimize
      View synonyms
    2. 1.2historical Transfer (land) to a corporation in mortmain.
      ‘lands amortized without licence’
      • ‘Thus, the transfer of a Sec. 197 intangible from a terminating partnership to a new one results in the latter ‘stepping into the shoes’ of the terminating partnership and continuing to amortize the property as if no transfer had occurred.’
      • ‘In 13 years, nobody has ever asked him to amortize the land we have used for parks.’

Origin

Late Middle English (in the senses ‘deaden’ and ‘transfer (land) to a corporation in mortmain’): from Old French amortiss-, lengthened stem of amortir, based on Latin ad ‘to, at’ + mors, mort- ‘death’.

Pronunciation

amortize

/əˈmɔːtʌɪz/