What is Amortisation?

By Chris Andreou
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Last updated
September 16, 2023

Contents

What is Amortisation? guide

In business accounting, amortisation is a method of calculating the value of a business asset over time. It is the process of spreading out the cost of an asset over its useful life.

In relation to loans, amortisation refers to the spreading out of loans into a series of fixed monthly installments.

<p>In <a href="https://www.goforma.com/small-business-accounting/31-accounting-terms-concepts-you-need-to-know" target="_blank">business accounting</a>, amortisation is a method of calculating the value of a business asset over time. It is the process of spreading out the cost of an asset over its useful life.<br></p><p>In relation to loans, amortisation refers to the spreading out of loans into a series of fixed monthly installments.</p>

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