Simuily / Learn and calculate

Glossary

Principal

The starting savings balance or loan amount used by the model.

New money added to a balance.

A change in the price level; its future value in a model is an assumption.

A recurring payment whose included components must be stated.

Repayment of loan principal.

The availability of money for use.

The duration of a plan or loan.

A rate quoted under a frequency and convention that must be stated.

An equivalent rate reflecting compounding over the stated period.

Loan divided by the specified reference property value.

Money paid towards the purchase price, separate from other expenses.

A set of assumptions used to compare outcomes.

Money reserved for unexpected needs or an income interruption. Its size and access should reflect your expenses and circumstances.

Money allocated to an expected expense with an approximate date, separate from an emergency reserve.

An amount expressed in the currency and date of the calculation, without adjusting purchasing power for inflation.

A balance adjusted by a price factor to express purchasing power at a reference date, not a separate bank account.

The difference between percentages: moving from a 3% rate to 4% is a one percentage point increase.

A cost expressed as a money amount, distinct from a percentage of assets or a contribution.

A nominal rate convention with compounding twice a year. Its monthly equivalent is (1 + annual rate/2) raised to 1/6, minus 1.

Principal still owed on a particular date. It differs from the sum of future payments, which may also contain interest.