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Meaning & use

notional

adjective·Advancedformal

Last updated

UK/ˈnəʊʃənl/
US/ˈnoʊʃənl/

Meanings

  1. adjectivebefore a noun

    Existing only as an idea or estimate, not as something actual or exact.

    Grammar: Usually before a noun: a notional figure.

    Patterns

    • a notional amount
    • a notional figure

    The company charged a notional rent of one dollar a year.

    The notional boundary between the two zones runs through the forest.

    We set a notional budget to compare the options.

  2. adjectivebefore a nounfinancetechnical

    In finance, referring to a stated amount used only to calculate payments, even though that amount is not actually exchanged.

    Grammar: Often in notional value or notional amount.

    Patterns

    • notional value
    • notional principal

    Interest is calculated on the notional amount of the swap.

    The notional value of the contracts was very large.

    The notional principal never changes hands.

Common combinations

notional value
The notional value of the contract is ten million dollars.
notional amount
Payments are based on the notional amount.
notional rent
The charity pays a notional rent for the building.
notional line
A notional line separates the two territories.
notional budget
They drew up a notional budget for planning.

Synonyms and how they differ

theoretical
Theoretical means based on theory, and fits ideas or models, while notional suggests a figure or label used for convenience.
hypothetical
Hypothetical means imagined as a possibility, while notional is about a nominal value that is not actual.
nominal
Nominal means existing in name only, often very small, and is closest to notional in business use.
imaginary
Imaginary means not real at all, while notional implies a working idea that people do agree to use.

Opposites

actualrealconcrete

Word family

notion noun
an idea or belief
notionally adverb
in theory or in name only
notional adjective
existing as an idea only

Commonly confused: notional or national? notional or nominal?

notional vs national

National means relating to a nation; notional means existing as an idea. They differ by one letter and sound different.

notional vs nominal

Nominal often means very small in amount, while notional means theoretical.

Practice

The tenant pays a ____ rent of one dollar a year, so the arrangement is almost free.

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