notional

The word "notional" describes something that exists in theory, in planning, or as a concept, rather than as something fully real, final, or actually in effect. It usually points to an idea, figure, or category used for thinking, estimating, or calculating.

You might describe a plan, budget, or timetable as "notional" if it is still very preliminary and has not been fully worked out. For example: "We have a notional budget for the project, but we still need firm numbers." This means the budget is a rough estimate, not a final commitment.

In finance, "notional value" or "notional amount" is a common term. It refers to the amount used to calculate payments in a derivative contract, even though that full amount is usually not exchanged. This can be confusing, so it helps to think of it as a reference figure rather than actual cash changing hands.

"Notional" can also mean approximate, assumed, or existing for the sake of discussion. A notional deadline may be a target date rather than a date that has been officially fixed. In linguistics, it can refer to meaning rather than strict grammatical form, as in notional agreement. Across these uses, the core idea stays the same: something "notional" belongs more to thought, calculation, or description than to solid, concrete reality.