principal and principle

Principal means main.
A principal is the head (of a department).
Principle means general law or code of conduct.

Writers occasionally confuse the words principal and principle.

Principal

In its most common role, principal is an adjective meaning main or key.

Examples: The word principal can also be noun mean head or chief. It is commonly used to denote head teacher in the US.

Principle

The word principle is a noun. It has a range of meanings, including rule, belief, tenet and theory.  In general, principle offers the idea of general law or code of conduct.

A Quick Test

A1 

If you imagine that the l on the end of principal looks like a 1, then the last two letters become A1.  This may help you to remember that principal denotes the most important or main.
PRINCIPAL AND MONEY 

When referring to a loan, the principal (or principal sum) is the original amount of a debt or investment on which interest is calculated.


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See Also

What are nouns? What are verbs? List of easily confused words