English: So, suppose you have got software, you have purchased software and the license is for 3 years; that means, every year; one third of the cost will be reduced in the beginning if you pay 3 lakhs for 3 years, then you can calculate that for each year 1 lakh rupees is a fall in the value of that software; at the end of three years it will become 0; that 1 lakh which is calculated each year is called as amortization.
Telugu: ప్రారంభంలో మీరు 3 సంవత్సరాలకు 3 లక్షలు చెల్లిస్తే ప్రతి సంవత్సరం 1 లక్ష రూపాయలు ఆ సాఫ్ట్‌వేర్ విలువలో తరుగుదల అని లెక్కించవచ్చు.