Amortization is the paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers are probably to encounter amortization with a mortgage or car bank loan. It is the spreading away from capital expenses for intangible resources over a specific time period for accounting and tax purposes. Amortization is similar to depreciation, which is employed for tangible assets, and in order to depletion, which is combined with natural resources.