Principal Amount
/ˈprɪnsəpəl əˈmaʊnt/
Definitions
- (n.) The original sum of money lent or invested, excluding interest, fees, or other charges.
The borrower agreed to repay the principal amount over five years.
Forms
- principal amount
- principal amounts
Related terms
See also
Commentary
Use precise language to distinguish principal amount from interest or fees to avoid contractual ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.