The word you’re looking for is principal.

What that word means

  • The principal is the amount you actually borrow when you buy something on credit.
  • In this context, it equals the item’s total price minus any down payment you pay upfront.

Quick Scoop

  • Cash price of item
  • − Your down payment
  • = Principal → the part that’s being financed on credit.

So, the total cost of the item you’re purchasing on credit, after subtracting your down payment, is called the principal.

Information gathered from public forums or data available on the internet and portrayed here.