notional

/ˈnoʊ.ʃən.əl/ Formal / Technical

Say it: NOH-shuh-nul

1. adjective Existing as an idea, theory, or concept rather than in reality or as a tangible object.
The architect presented a notional design for the skyscraper, which existed only as a digital model.
2. adjective (Finance) Relating to a principal amount or value that is used for calculation but is not actually exchanged.
In an interest rate swap, the payments are calculated on a notional principal of $10 million.
3. adjective (Linguistics) Relating to meaning or concepts, as opposed to grammatical form or function.
A notional definition of a verb is an 'action word,' which describes its meaning rather than its syntactic role.

📖 Seen in the wild

The budget was based on a notional figure, as the exact costs were still unknown.
collected by @vocablast

✏️ notional in a sentence

For now, the plans for a new city park are purely notional; no funding has been approved.
The trader managed a portfolio with a notional value of over a billion dollars, though the actual capital at risk was much smaller.
He calculated a notional loss based on what the stock could have earned, which wasn't very helpful.
The debate moved from practical concerns to a more notional discussion about the nature of justice.
Any profit figures quoted before the end of the fiscal year are strictly notional.
The philosopher's argument rested on a notional distinction between two types of consciousness.
We can talk about a notional 'average citizen,' but no single person actually fits that description.

🔁 Synonyms & antonyms

theoretical hypothetical conceptual abstract speculative conjectural imaginary putative

theoretical · suggests something based on established principles, often contrasted with practical application.

hypothetical · emphasizes something assumed to exist for the sake of argument or investigation.

conceptual · focuses on the abstract plan or idea of something, often before it is made real.

abstract · highlights something that exists as a thought but lacks a physical or concrete existence.

Opposites: actual, real, concrete, tangible, factual

🌱 Where it comes from

The word 'notional' comes directly from the Latin 'notio', meaning 'a concept' or 'idea'. This in turn derives from the verb 'noscere', meaning 'to get to know'. Its meaning has remained remarkably stable, always referring to things of the mind rather than things of the physical world.

🧩 How it's used

Common patterns:

notional valuenotional amountnotional conceptnotional principalpurely notionalnotional distinction

'Notional' is a formal word often used in academic, financial, and technical contexts to emphasize a distinction between an idea and a reality. In casual conversation, simpler words like 'hypothetical' or 'imaginary' are more natural. Be careful not to confuse it with 'nominal,' which means 'in name only' or refers to a very small, token amount.

Word family: notion, notionally

💬 Quick answers

What does 'notional' mean in simple terms?

It means something exists as an idea, concept, or for the purpose of calculation, but not in physical reality. Think of it as 'in theory' or 'on paper'.

What's the difference between notional and theoretical?

'Notional' often refers to something that exists only as a concept or calculation. 'Theoretical' refers to something based on a theory, which may or may not be proven but is part of a larger framework of principles.

What is a 'notional amount' in finance?

It's a specified principal amount used to calculate payments on financial instruments like swaps or options. This amount itself is not exchanged, serving only as a reference point for the calculations.

Is 'notional' a formal word?

Yes, it is generally considered formal and is most common in academic, financial, and other technical contexts. It is rare in casual conversation.

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