Amortization
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Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time. Particular instances of the term include:
- Amortization (business), the allocation of a lump sum amount to different time periods, particularly for loans and other forms of finance, including related interest or other finance charges.
- Amortization schedule, a table detailing each periodic payment on a loan (typically a mortgage), as generated by an amortization calculator.
- Negative amortisation, an amortisation schedule where the loan amount actually increases through not paying the full interest
- Amortized analysis, analyzing the execution cost of algorithms over a sequence of operations.
- Amortization of capital expenditures of certain assets under accounting rules, particularly intangible assets, in a manner analogous to depreciation.
Amortization is also used in the context of zoning regulations and describes the time in which a property owner has to relocate when the property's use constitutes a preexisting nonconforming use under zoning regulations.
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