CONCEPT / EXAMPLE / CONTEXT

Principal

In our calculators, it is the starting amount: money initially saved or the amount borrowed. Capital can have other meanings in accounting and business finance.

An example to understand it

If a simulation starts with 2,000,000 and you add 100,000 each month, initial principal is 2,000,000. Monthly contributions and interest are tracked separately.

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Concept references

Investor.gov · Principal ↗ · Accessed: 2026-11-03

Definition and example prepared with AI assistance. Hypothetical examples, not current market data. · 2026-11-03