amortization

noun

am·​or·​ti·​za·​tion ˌa-mər-tə-ˈzā-shən How to pronounce amortization (audio)
 also  ə-ˌmȯr-
1
: the act or process of amortizing
2
: the result of amortizing

Examples of amortization in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Initially, businesses could deduct interest expenses up to 30% on EBITDA (earnings before interest, taxes, depreciation, and amortization. Paulina Likos, CNBC, 29 July 2025 The previous law restricted the deduction of business interest expense to 30% of adjusted taxable income and excluded the add-back of depreciation and amortization from the calculation, lowering the amount of deductible interest for capital-intensive businesses. Garth Friesen, Forbes.com, 29 July 2025 Earnings before interest, taxes, depreciation and amortization topped $50 million. Kurt Badenhausen, Sportico.com, 25 July 2025 Adjusted operating income before depreciation and amortization rose 10% to $398 million, primarily due to cost-cutting efforts. Dade Hayes, Deadline, 22 July 2025 See All Example Sentences for amortization

Word History

First Known Use

1810, in the meaning defined at sense 1

Time Traveler
The first known use of amortization was in 1810

Browse Nearby Words

Cite this Entry

“Amortization.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/amortization. Accessed 4 Aug. 2025.

More from Merriam-Webster on amortization

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!