Amortisation (or amortization; see spelling differences) is paying off an amount owed over time by making planned, incremental payments of principal and interest. To amortise a loan means 'to kill it off'. In accounting, amortisation refers to charging or writing off an intangible asset's cost as an operational expense over its estimated useful life to reduce a company's taxable income. Amortisation (or amortization; see spelling differences) is paying off an amount owed over time by making planned, incremental payments of principal and interest. To amortise a loan means 'to kill it off'. In accounting, amortisation refers to charging or writing off an intangible asset's cost as an operational expense over its estimated useful life to reduce a company's taxable income. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire 'to kill', from Latin ad- and mort-, 'death'.