Amortization - Definition

The gradual elimination of debt in regular payments over time. This Amount must be high enough to cover both Principal and Interest. Another definition of amortization is similar to Depreciation. This is the deduction of Capital expenses over time, as a method of measuring the consumption of the value of Long-term assets, such as equipment or buildings. Because this time period is in effect the life of the Asset, it is also a specified time period. The period as a whole is known as the Amortization term. It is often pattern of payments is organized in what is known as an Amortization schedule, which is a table detailing the payments made and anticipated, in terms of date and amounts.



Terms near "Amortization"

Amortization method
Amortization of premium
Amortization schedule
Amortization term
Amortized
Amortized value
Amount
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