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Repayment vs Amortization - What's the difference?

repayment | amortization |

As nouns the difference between repayment and amortization

is that repayment is the act of repaying while amortization is the reduction of loan principal over a series of payments.

repayment

English

Noun

(en noun)
  • the act of repaying
  • the money or other resource that is repaid

    • amortization

    English

    Alternative forms

    * (UK) amortisation

    Noun

  • The reduction of loan principal over a series of payments.
  • The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.

    • See also

    * depreciation (of tangible assets) * depletion (of natural resources) * * * (projectlink) * (projectlink)