principal / principle are similar-sounding terms with different meanings (referred to as homophones). To better understand the differences, see below for definitions, pronunciation guides, and example sentences using each term. 👇
principal: (noun) the original amount of a debt on which interest is calculated. (noun) the educator who has executive authority for a school. (noun) capital as contrasted with the income derived from it. (noun) (criminal law) any person involved in a criminal offense, regardless of whether the person profits from such involvement. (noun) the major party to a financial transaction at a stock exchange; buys and sells for his own account.
principle: (noun) a basic generalization that is accepted as true and that can be used as a basis for reasoning or conduct. (noun) a rule or standard especially of good behavior. (noun) a basic truth or law or assumption. (noun) a rule or law concerning a natural phenomenon or the function of a complex system. (noun) rule of personal conduct.
principal: p·r·IH·n·s·ah·p·ah·l
principle: p·r·IH·n·s·ah·p·ah·l
(Examples are Wikipedia snippets under the CC ShareAlike 3.0 license. Definitions drawn from WordNet.)