amortizes
Pays off incrementally
Amortizes is the third-person singular of amortize, meaning to pay off a debt gradually through regular installments that cover both principal and interest: The loan amortizes over thirty years.
In accounting, to amortize is to spread the cost of an intangible asset across its useful life: The company amortizes its patents over fifteen years.
The noun is amortization.
Asset value reduction over time
- expensesMoney spent on things
- spreadsDistributes over area
- allocatesDistributes for specific purposes
- writes offRemoves from accounts
balance sheet · asset value · cost recovery · prorates · installments · book value · financial statements · deductions
Giving back what's owed
- principalChief school administrator
- interestAttention, stake, or fee
- mortgageSecured home loan
- installmentsPeriodic partial payments
payment schedule · loan balance · monthly payments · debt reduction · payoff · term · borrowing · refinancing
Makes letters large-form
- development costsSpending to create something
- intangible assetsNonmaterial items of value
- subscriptionPaid recurring access
- licensing feesPayments for usage rights
SaaS · intellectual property · goodwill · startup costs · digital assets · software licenses
depreciation
Asset value reduction over time
writes off · balance sheet · asset value · cost recovery · prorates · installments · book value · financial statements · deductions · useful life
repayment
Giving back what's owed
installments · payment schedule · loan balance · monthly payments · debt reduction · payoff · term · borrowing · refinancing · remaining balance
capitalizes
Makes letters large-form
- development costsSpending to create something
- intangible assetsNonmaterial items of value
- subscriptionPaid recurring access
licensing fees · SaaS · intellectual property · goodwill · startup costs · digital assets · software licenses
amortizesaccrues
Increases by addition
accumulates · compounds · defers · rolls over · balloons
amortization, amortize, amortized, amortizing, amortizations