1. The process of paying off a debt gradually through regular installments over a fixed period.
Usage: British English spelling; American English uses 'amortization'; Commonly used in finance and accounting
2. In accounting, the gradual reduction of the value of an intangible asset over its useful life.
Usage: Technical accounting term; Similar to depreciation but applied to intangible assets

Examples

• The bank provided a 30-year amortisation schedule for the mortgage.
• Over the amortisation period, the borrower will pay both principal and interest.
• The company recorded amortisation of its patents in the financial statements.
• Amortisation of the software license will be spread across five years.
• Each monthly payment includes both principal and interest as part of the amortisation plan.
• The accountant calculated the annual amortisation expense for the intangible assets.