Amortization - Applications of Amortization

Applications of Amortization

• Amortization (business), the allocation of a lump sum amount to different time periods, particularly for loans and other forms of finance, including related interest or other finance charges.
  • Amortization schedule, a table detailing each periodic payment on a loan (typically a mortgage), as generated by an amortization calculator.
  • Negative amortization, an amortization schedule where the loan amount actually increases through not paying the full interest
• Amortized analysis, analyzing the execution cost of algorithms over a sequence of operations.
• Amortization of capital expenditures of certain assets under accounting rules, particularly intangible assets, in a manner analogous to depreciation.
• Amortizing loan
• Amortization (tax law)

Amortization is also used in the context of zoning regulations and describes the time in which a property owner has to conform or relocate when the property's use constitutes a preexisting nonconforming use under amended zoning regulations.