Less Ads, More Data, More Tools Register for FREE

Amortization

Definition of 'Amortization'

A fund which is built up over a period of time to replace a productive asset, or to pay off a loan.

If the fund is to repay a loan, then interest rates need to be considered, and if the fund is to replace an asset, then interest rates, expected lifetime of the asset, and cost of replacement also need to be considered.