What does amortising mean?
Amortising is a financial term that refers to the process of gradually reducing the value of an asset or liability over time. It is often used in the context of loans, mortgages, and investments. The term is derived from the French word 'amortir,' which means 'to kill' or 'to destroy.' In finance, amortising refers to the process of gradually reducing the value of an asset or liability over time. This can be done through regular payments, such as monthly mortgage payments, or through the sale of an asset. Amortising is an important concept in finance, as it allows individuals and businesses to manage their debt and make informed investment decisions. It is a useful term to understand, especially for those working in finance or investing.
verbTo reduce or pay off a debt, especially by regular payments over a period of time.
- To reduce or pay off a debt, especially by regular payments over a period of time.
"The company is amortising the loan over the next five years."
"The company is amortising the loan over the next five years."
"The government is amortising the cost of the infrastructure project over several decades."
The plural form 'amortisings' is used to describe the process of amortising multiple debts or assets.
"The company is amortising several loans over the next few years."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of amortising
The term 'amortising' is derived from the French word 'amortir,' which means 'to kill' or 'to destroy.' This word is thought to have originated from the Old French word 'amortir,' which was used to describe the act of killing or destroying something. The term 'amortising' was later adopted into English and has been used in finance since the 15th century.
How amortising is actually used
In finance, amortising refers to the process of gradually reducing the value of an asset or liability over time. It is often used in the context of loans, mortgages, and investments.