Amortization is an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time. Concerning a loan, amortization focuses on spreading out loan payments over time. When applied to an asset, amortization is similar to depreciation.

Merriam-Webster Online Dictionary
amortization (noun)
1.
the act or process of - amortizing
2.
the result of amortizing
amortization
Categories: Accounting