Principal amount


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Principal amount

The face amount of debt; the amount borrowed or lent. Often called principal.

Principal Amount

The amount of money one borrows. Unless the loan is interest-free, one always pays more than the principal amount to the lender. The interest is calculated over the principal amount still outstanding. As a result, many loans are amortized so that a greater amount of principal amount remains outstanding for a longer period of time so the lender can make the most profit from the loan. It is also simply called the principal.
References in periodicals archive ?
356 still applies and gain is measured by the entire principal amount of the securities received.
A TIPS also will provide for an additional payment at maturity if the security's inflation-adjusted principal amount for the maturity date is less than the security's principal amount at issuance.