notional amount

noun

A nominal amount of a financial instrument that is used to calculate payments made on that instrument, especially for instruments that do not have a well-defined face value or par value.

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Meanings

nounnotional amount (plural notional amounts)

plural notional amounts

  1. businessA nominal amount of a financial instrument that is used to calculate payments made on that instrument, especially for instruments that do not have a well-defined face value or par value.
Cite this entry
APA

notional amount. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/notional%20amount

MLA

“notional amount.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/notional%20amount. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “notional amount,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/notional%20amount.

Source: notional amount on Wiktionary, CC BY-SA 4.0.