What does notional mean?
Notional describes something that exists as an idea, assumption, calculation, or intended arrangement rather than as a fully realized fact. The word is especially common in law, finance, economics, and academic discussion, where one may speak of notional value, notional income, or notional consent. Such a figure or arrangement need not be imaginary or worthless; it may simply be based on an agreed assumption or exists in principle. This distinguishes it from an actual transaction, in which real assets or money change hands. In general use, “notional” can also suggest that something is merely hypothetical or exists in name only, so context determines whether the term describes a practical legal or financial concept or simply an unrealized idea.
adjectiveBased on an idea or concept rather than an actual instance; existing as an intended, theoretical, or merely hypothetical notion.
- Based on an idea, assumption, or concept rather than an actual instance.
- Existing in theory or as an intended arrangement, whether or not it is actually realized.
"The committee approved a notional increase in funding that had not yet been secured."
"The company reported a notional profit for the quarter, although no funds had changed hands."
"Teachers may use a notional example before asking students to analyze the underlying grammar."
Notional can describe something that is imaginary, yet also something intended or accepted in principle—a distinction that can quietly change the meaning of a contract or calculation.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does notional come from?
Notional was formed in the late 16th century from notion and the suffix -al. Notion comes through French from Latin notio, a “knowledge” or “idea,” ultimately related to notus, “known,” and noscere, “to know.” The same Latin root appears in notable and notify, while cognation belongs to a related family of words expressing knowledge or recognition.
Related word forms
How notional is actually used
The term is common in legal, financial, economic, and academic contexts. It is often more technical than “imaginary”: a notional value may be a legitimate calculation based on assumptions even though no money was actually exchanged.
Easily confused with notional
A notion is an idea or concept, whereas notional is an adjective describing something based on an idea, assumption, or concept rather than an actual instance.
Nominal means existing in name or as a stated value, while notional more often means based on an assumption, concept, or intended reality rather than an actual transaction or condition.