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: to reduce (an amount) gradually: as
a : to pay off (as a loan) gradually usually by periodic payments of principal and interest or payments to a sinking fund
b : to gradually reduce the cost of (as an asset) esp. for tax purposes by making periodic charges to income over a time span [ the machinery over five years] see also depreciation compare capitalize, deduct
amor·ti·za·tion [a-mər-tə-zā-shən, ə-mȯr-]
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.