amortising

Paying off gradually

Amortising is the British spelling of amortizing—gradually paying off a debt through regular instalments, or spreading the cost of an asset over its useful life.

A mortgage is typically amortised over fifteen to thirty years: The loan amortises over twenty years.

In accounting, amortising applies to intangible assets like patents, while depreciation covers physical ones.

loans

mortgage

Secured home loan

principalChief school administrator
interestAttention, stake, or fee
installmentPeriodic partial payment

repayment · borrower · lender · debt · loan · annuity · credit · outstanding · periodic · term

accounting

depreciation

Asset value reduction over time

expenseMoney paid out
write-offRecorded value reduction
assetItem of value owned

intangible · goodwill · tangible · impairment · bookkeeping · ledger · charge · straight-line · residual · capitalisation

schedule

timeline

Ordered display of events

termFixed period or word
periodicOccurring at intervals
monthlyOccurring each lunar cycle

quarterly · annual · calculator · breakdown · cumulative · structure · front-loaded · graduated · negative · chart

bonds

premium

Added cost for better

discountReduced price offered
parExpected stroke count
couponCertificate for reduced price

yield · maturity · face-value · debenture · securities · issuance · redemption · callable · accrual · spread

Opposites

payment structure

amortisinglump-sum payment

Full amount paid immediately

balloon payment · single payment · one-time payment · prepaying

debt principal behavior

amortisingaccruing

Gradually increasing amount

interest-only · accumulating · compounding · deferring · rolling over

asset value treatment

amortisingappreciating

Recognizing value or quality

capitalising · writing up · adding value

Family

amortization, amortize, amortized, amortise, amortizing, amortizes, amortised, amortisation

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