Hoofdsom

Hoofdsom is a Dutch financial term that refers to the principal amount of a loan or investment—the original sum borrowed or invested, exclusive of interest, fees, or other costs. The word combines hoofd (main, principal) with som (sum) and is commonly used in consumer loans, mortgages, and other credit agreements, as well as in investment contexts to denote the initial capital.

In a loan, the hoofdsom is the amount on which interest is calculated. As repayments are made, part of each payment reduces the hoofdsom (aflossing), so the remaining hoofdsom—the outstanding balance—decreases over time. Depending on the contract, a loan may be repaid in fixed installments, with the interest portion changing as the hoofdsom declines.

In investments, the hoofdsom denotes the initial amount invested. The value of the investment can rise or fall, but the term still refers to the original capital invested regardless of fluctuating market value.

The concept is distinct from rente (interest) and from total repayment, which combines hoofdsom and interest over the loan term. Understanding the hoofdsom is essential for calculating repayments, balance schedules, and comparisons of loan offers or investment outcomes.

See also: rente, aflossing, looptijd, lening, investering.