Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is Amortization?

Amortization is like giving a life span to a financial obligation, over a set number of years, and gradually killing-off the obligation with set payments.

Amortization is the calculation of a fixed payment schedule over a set number of years to allow the repayment of a loan, such as a home mortgage. From an accounting standpoint, it can refer to the practice of spreading-out the cost of any intangible asset over time. For example, the IRS will allow a taxpayer to amortize the premium of a bond for deductions.

Amortization is similar to depreciation, but depreciation is used for tangible assets. Calculators that can help consumers calculate amortization are widely available on the internet.

Keywords: debt, loans, amortization, mortgage,