Definition of Amortization

the process of determining the cost of something intangible over time

Examples of Amortization in a sentence

You can try to use amortization to determine the value of something unseen, such as friendship or memories, but ultimately that might still be impossible.  🔊

Amortization is most often used in business when discussing interest, which is an intangible cost of something.  🔊

Amortization is often used to determine debt, which is an intangible amount of money that must be paid at a later date.  🔊

When you reduce the amount of debt you own by making a payment, you are participating in the process of amortization, affecting an intangible amount of something.  🔊

Anytime you attempt to quantify the worth of something intangible, you are making use of the amortization process.  🔊

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