1. Home
  2. Business & Finance
  3. US Business Law / Taxes

Amortization, Amortize; Amortization Schedule

By Jean Murray, About.com

Amortization has several meanings. In relation to loans, amortization is the process of paying down the loan by making payments which include both principal and interest.

Amortization is also related to the concept of depreciation. While depreciation expenses the cost of a tangible asset over its useful life, amortization deals with expensing an intangible asset or liability, like a mortgage.

An amortization schedule is often used to show the amount of interest and principal for a loan with each payment.

Explore US Business Law / Taxes
About.com Special Features

Start your new business on the right foot with these helpful tips. More >

Easy steps to take control of your credit card debt. More >

  1. Home
  2. Business & Finance
  3. US Business Law / Taxes
  4. Common Business Terminology
  5. Glossary A
  6. What is Amortization - Amortize Definition - Amortization Definition - Loan Amortization >

©2009 About.com, a part of The New York Times Company.

All rights reserved.