Definition of "amortization" []

• The act or process of amortizing. (noun)
• The money set aside for this purpose. (noun)
• In reckoning the yield of a bond bought at a premium, the periodic subtraction from its current yield of a proportionate share of the premium between the purchase date and the maturity date. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

• "That's what they call the amortization schedule, which can go on for as long as forty years."
• "Mr. Funke Kupper reiterated that earnings before interest, tax, depreciation and amortization from the division are expected to slide from around A$260 million in the 2010 financial year to A$100 million in 2012."
• "He also pledged that rental contracts between tenants and landlords will be converted into sales contracts under which tenants will become owners of housing quarters under a long-term amortization plan."