# principal (in a debt service context)

- Canonical URL: https://www.gerhardmerk.de/principal-in-a-debt-service-context
- Post ID: 612520
- Modified: 2026-09-21T01:22:34+00:00
- Language: en

## Definition

Principal is the original amount borrowed or the face value of a debt instrument, excluding interest and other financing costs. In a bond, it is generally the amount stated on the instrument and repaid at maturity. For a loan, principal denotes the amount advanced by the lender; as repayments are made, the outstanding principal declines. Interest is calculated separately, usually on the outstanding principal.

## Machine-readable

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