📖 Glossary
236 terms explained in plain language — covering finance, health, construction, electrical, and more.
A
A financial product that provides guaranteed regular payments (pension) in exchange for a lump-sum investment. In India,…
The year following the financial year in which income is assessed, taxes are calculated, and income tax returns are file…
The process of spreading a cost over time. In loans, amortization means repaying a loan through fixed EMIs where each pa…
Assets Under Management (AUM) is the total market value of all investments managed by a mutual fund, AMC (Asset Manageme…
Income tax paid in quarterly installments during the financial year itself, rather than as a lump sum at year-end. Under…
The strategy of distributing investments across different asset classes — primarily equity, debt, and gold — to balance …
Aggregate is granular material — such as gravel, crushed stone, sand, or recycite — used as a key component in concrete,…
The ampere (commonly shortened to amp, symbol A) is the SI base unit of electric current, measuring the rate of flow of …
Alternating Current (AC) and Direct Current (DC) are the two types of electrical current flow. AC periodically reverses …
American Wire Gauge (AWG) is the standardized wire sizing system used in the United States and Canada. Counter-intuitive…
The measure of the two-dimensional space enclosed by a shape, expressed in square units (ft², m², etc.).
The rate of change of velocity over time, measured in m/s² or ft/s². Positive acceleration means speeding up; negative (…
The weighted average mass of an atom of an element, accounting for all naturally occurring isotopes. Measured in atomic …
The number of particles (atoms, molecules, ions) in one mole of a substance: 6.022 × 10²³. Named after Italian scientist…
B
Body Mass Index (BMI) is a widely recognized medical and fitness proxy used to estimate a person's total body fat based …
Moving an existing loan from one lender to another offering better terms — typically a lower interest rate, which reduce…
A standard against which the performance of a mutual fund or portfolio is measured. Common Indian benchmarks: Nifty 50 (…
The Break-Even Point is a foundational concept in both business forecasting and personal finance that identifies the exa…
A board foot (BF) is the standard unit of measurement for lumber volume in the United States. One board foot equals a pi…
Basal Metabolic Rate — the number of calories your body requires at complete rest to maintain basic life-sustaining func…
Body fat percentage is the proportion of your total body weight that consists of fat tissue, expressed as a percentage. …
Blood pressure is the force exerted by circulating blood on the walls of blood vessels, measured in millimeters of mercu…
Body Surface Area (BSA) is the measured or calculated surface area of the human body, expressed in square meters (m²). B…
British Thermal Unit (BTU) is a traditional unit of heat energy still widely used in the US for heating, cooling, and en…
The gradual loss of an EV battery's maximum capacity over time and charge cycles. Most EV batteries retain 80–90% capaci…
C
A credit score assigned by TransUnion CIBIL ranging from 300-900. It reflects your creditworthiness based on loan repaym…
Collateral is an asset or property pledged by a borrower to a lender as security for a loan. If the borrower defaults on…
Compound Annual Growth Rate — the mean annual growth rate of an investment over a specified time period longer than one …
Interest calculated on both the initial principal and the accumulated interest from previous periods. Often called 'inte…
Central GST — the portion of GST collected by the Central Government on intra-state transactions. For any intra-state sa…
Capital Gains Tax (CGT) is a tax levied on the profit realized from the sale of a capital asset — such as stocks, mutual…
Cess is a tax levied by the Central Government of India over and above the existing tax (income tax, GST) for a specific…
A simplified GST scheme for small businesses with turnover up to ₹1.5 Crore (goods) or ₹50 Lakh (services). Offers lower…
A numerical representation of creditworthiness, typically ranging from 300-900 in India. Factors: repayment history (35%…
A person who jointly takes a loan with the primary borrower. Both are equally responsible for repayment. Common in home …
Concrete strength is measured in PSI (pounds per square inch), indicating the maximum compressive load a concrete mix ca…
A cubic yard (cu yd or yd³) is the standard bulk volume measurement in US construction, equal to 27 cubic feet (3 ft × 3…
Concrete mix ratio defines the proportions of cement, sand (fine aggregate), and coarse aggregate (gravel/crushed stone)…
Concrete yield is the actual volume of concrete produced from a given mix, expressed in cubic feet or cubic yards. Yield…
A calorie deficit occurs when you consume fewer calories than your body burns (TDEE), forcing it to use stored energy (p…
A calorie surplus occurs when you consume more calories than your body burns (TDEE), providing excess energy that the bo…
A circuit breaker is a safety device that automatically interrupts electrical current flow when it detects an overload, …
A selection of objects where order does not matter. The number of combinations of n objects taken r at a time is C(n,r) …
The three tiers of EV charging speed: Level 1 (120V household, 3–5 mi/hr), Level 2 (240V, 15–30 mi/hr), Level 3 DC Fast …
Electric Vehicle Supply Equipment — the infrastructure that delivers electricity to charge an EV. Includes home chargers…
The net amount of cash moving in and out of a business. Positive cash flow means more money coming in than going out — e…
D
The initial upfront portion of the total purchase price paid by the buyer from their own funds. For home loans, typicall…
A portion of a company's profits distributed to shareholders. In mutual funds, dividend option means periodic payouts fr…
An electronic account that holds stocks, bonds, and mutual fund units in dematerialized (digital) form. Required for tra…
The reduction in value of an asset over time due to wear and tear. In tax context, businesses can claim depreciation as …
The strategy of spreading investments across different asset classes (equity, debt, gold, real estate) to reduce risk. '…
The actual release of loan funds to the borrower's account. Can be full (personal/car loan) or partial (home loan — disb…
In the retail and consumer sector, a discount rate is defined as the exact percentage reduction applied to the original,…
Drywall (also called gypsum board, sheetrock, or plasterboard) is the standard interior wall and ceiling finish material…
Mass per unit volume of a substance (ρ = m/V), typically measured in kg/m³ or g/cm³. Water's density is 1 g/cm³ or 1,000…
The process of reducing a solution's concentration by adding more solvent. Governed by C₁V₁ = C₂V₂ (concentration × volu…
Level 3 EV charging that delivers high-voltage DC power directly to the battery, bypassing the onboard charger. Can char…
A financial leverage ratio comparing total liabilities to shareholders' equity (D/E = Total Debt / Total Equity). Higher…
E
Equated Monthly Instalment — a fixed payment amount made by a borrower to a lender at a specified date each month. EMI c…
Equity Linked Savings Scheme — tax-saving mutual funds with the shortest lock-in period of 3 years among all Section 80C…
The annual fee charged by a mutual fund for managing investors' money, expressed as a percentage of assets. Lower expens…
External Benchmark Lending Rate — a lending rate linked to an external benchmark (typically RBI repo rate). Introduced i…
A fee charged when you redeem (sell) mutual fund units before a specified period. Typically 1% if redeemed within 1 year…
An electronic document required for movement of goods worth more than ₹50,000. Generated on the e-way bill portal. Conta…
When an EMI payment fails due to insufficient funds in the linked bank account. Consequences: ₹500-1,000 penalty per bou…
A mathematical notation indicating how many times a base number is multiplied by itself (e.g., 2³ = 2 × 2 × 2 = 8).
The simplest whole-number ratio of atoms of each element in a compound (e.g., CH₂O for glucose, whose molecular formula …
A federal tax incentive of up to $7,500 for qualifying new electric vehicles under the Inflation Reduction Act, subject …
The total value of a company: market capitalization + total debt − cash and cash equivalents. Used in valuation multiple…
Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of a company's core operating profitability …
F
A method where interest is calculated on the original loan amount for the entire tenure, regardless of repayments made. …
Closing a loan entirely before the tenure ends by paying off the full outstanding balance. For floating rate loans, bank…
A financial instrument where you deposit a lump sum with a bank for a fixed tenure at a predetermined interest rate. FDs…
A TDS certificate issued by employers to salaried employees, containing details of salary, allowances, deductions, TDS d…
An interest rate that changes periodically based on a benchmark rate (like RBI repo rate). Floating rates are typically …
An interest rate that remains constant throughout the loan tenure. Provides EMI certainty but is typically 1-2% higher t…
The 12-month period used for accounting and tax purposes in India, running from April 1 to March 31. Income earned durin…
A footing is the lowest structural element of a building's foundation — a widened base that distributes the structure's …
The product of all positive integers less than or equal to a given number n, written as n! (e.g., 5! = 120).
A push or pull on an object measured in Newtons (N). Defined by Newton's Second Law: Force = mass × acceleration (F = ma…
The resistive force that opposes the relative motion of two surfaces in contact. Friction force = μ × Normal force, wher…
The number of complete wave cycles per second, measured in Hertz (Hz). 1 Hz = 1 cycle per second.
G
Goods and Services Tax — a comprehensive indirect tax on the supply of goods and services in India. Replaced multiple ta…
GST Identification Number — a 15-digit unique number assigned to every registered GST taxpayer. Format: 2-digit state co…
A person who guarantees to repay a loan if the primary borrower defaults. The guarantor's CIBIL score is affected if the…
Grout is a dense fluid or paste used to fill gaps between tiles, lock tiles in place, and prevent moisture infiltration.…
A grade beam is a reinforced concrete beam at or near ground level that spans between foundation piers or piles to distr…
The Glycemic Index (GI) is a numerical scale (0–100) that ranks carbohydrate-containing foods by how quickly they raise …
The Greatest Common Divisor (GCD), also called Highest Common Factor (HCF), is the largest positive integer that divides…
Revenue minus the cost of goods sold (COGS), expressed as a percentage of revenue. Shows the profitability of core produ…
H
House Rent Allowance — a component of salary received by employees to meet rental expenses. HRA exemption under old regi…
Harmonized System of Nomenclature — an internationally standardized system for classifying traded products. Used in GST …
Heart rate training zones are ranges of heartbeats per minute (BPM) expressed as percentages of your maximum heart rate …
Hydration refers to the process of maintaining adequate water levels in the body for optimal physiological function. Wat…
Horsepower (hp) is a unit of power originally defined by James Watt to compare steam engine output to draft horses. In e…
I
The percentage charged by a lender on the principal amount, typically expressed as an annual percentage. Can be fixed (u…
A type of mutual fund that tracks a market index (like Nifty 50 or Sensex). Index funds have lower expense ratios (0.1-0…
A direct tax levied by the government on the income earned by individuals and entities. In India, income tax is administ…
Integrated GST — levied on inter-state supply of goods and services (and imports). Collected by the Central Government a…
The GST paid on business purchases that can be used to offset GST collected on sales. ITC reduces the net GST payable. C…
Income Tax Return — the form used to file income tax with the government. Multiple forms exist: ITR-1 (salaried, income …
Indexation is the practice of automatically adjusting economic values — such as tax brackets, wages, Social Security ben…
Inflation represents the gradual rate at which the general level of prices for everyday goods, services, housing, and co…
Ideal Body Weight (IBW) is a clinically estimated weight range considered healthy for your height, sex, and frame size. …
Impedance (symbol Z, measured in ohms Ω) is the total opposition to alternating current (AC) flow in a circuit, combinin…
The equation PV = nRT relating pressure (P), volume (V), moles of gas (n), the gas constant (R), and temperature (T) for…
The discount rate at which the net present value of all cash flows equals zero. Used to evaluate and compare investment …
J
K
Know Your Customer — a mandatory verification process for financial transactions. Required for opening bank accounts, in…
A kilowatt-hour (kWh) is the standard unit of electrical energy consumption, representing the use of 1,000 watts of powe…
Kilovolt-ampere (kVA) is a unit of apparent power in an AC electrical system, calculated as voltage × current ÷ 1,000. U…
The energy an object possesses due to its motion, calculated as KE = ½mv². Measured in joules (J).
Kilowatt-hours — the unit measuring an EV battery's total energy storage capacity. A larger kWh battery provides more ra…
L
Loan-to-Value ratio — the percentage of the property/asset value that a bank will finance. For home loans: up to 90% for…
Long Term Capital Gains (LTCG) is the profit from selling a capital asset held beyond a specified period. For FY 2025-26…
The minimum duration for which an investment must be held before it can be redeemed. ELSS: 3 years. PPF: 15 years (parti…
The ease with which an asset can be converted into cash without significant loss of value. Savings accounts and liquid m…
A linear foot (also called lineal foot) is a measurement of length equal to 12 inches or one foot, with no consideration…
A load-bearing wall (also called a structural wall) is a wall that carries and transfers weight from the roof, upper flo…
Lean Body Mass (LBM), also called fat-free mass, is everything in your body except fat — including muscle, bone, organs,…
The Least Common Multiple is the smallest positive integer that is divisible by each of two or more given numbers.
The inverse operation of exponentiation — the logarithm of a number is the exponent to which a base must be raised to pr…
M
A grace period during which the borrower is not required to make loan repayments. Common in education loans (course dura…
A professionally managed investment vehicle that pools money from multiple investors to invest in stocks, bonds, or othe…
The total amount receivable at the end of an investment's term. For FDs and RDs, maturity value = principal + compound i…
Marginal Cost of Funds based Lending Rate — the minimum interest rate below which banks are not permitted to lend. Intro…
Government-backed loans under Pradhan Mantri MUDRA Yojana for micro/small businesses up to ₹10 Lakh. Three categories: S…
Markup is a core commercial pricing concept defined as the specific monetary amount, or percentage, that a retailer or m…
Mortar is a workable paste made from cement, sand, water, and sometimes lime, used to bond bricks, blocks, and stone in …
Macronutrients (macros) are the three primary nutrients the body requires in large quantities for energy, growth, and bo…
Micronutrients are essential vitamins and minerals the body needs in small quantities for proper growth, development, an…
The sum of all values in a dataset divided by the number of values, representing the central tendency.
The middle value in a sorted dataset. If the dataset has an even number of values, the median is the average of the two …
The value that appears most frequently in a dataset. A dataset can have one mode, multiple modes, or no mode.
The product of an object's mass and velocity (p = mv), representing the quantity of motion. Measured in kg·m/s.
The SI unit for the amount of a substance, equal to 6.022 × 10²³ particles (atoms, molecules, or ions) — known as Avogad…
The mass of one mole of a substance, expressed in grams per mole (g/mol). Equal to the atomic/molecular weight read from…
A measure of solution concentration defined as moles of solute per liter of solution (mol/L or M).
A measure of solution concentration defined as moles of solute per kilogram of solvent (mol/kg or m).
The actual number of atoms of each element in a molecule. Can be a multiple of the empirical formula (e.g., C₆H₁₂O₆ is 6…
The EV equivalent of miles per gallon — how many miles an EV travels per kilowatt-hour of energy consumed. Typical range…
Miles Per Gallon equivalent — the EPA metric comparing EV energy consumption to gasoline. 33.7 kWh of electricity = 1 ga…
N
Net Asset Value — the per-unit value of a mutual fund scheme. Calculated daily as (Total Assets − Total Liabilities) ÷ N…
National Pension System — a government-sponsored retirement savings scheme. Offers equity, corporate bonds, and governme…
The simplified tax regime introduced in Budget 2020, made default from FY 2024-25. Offers lower tax rates but with minim…
No Objection Certificate — a document issued by the lender after a loan is fully repaid, confirming that the borrower ha…
A measure of solution concentration equal to the number of gram equivalents of solute per liter of solution. Used primar…
The present value of all future cash flows from an investment minus the initial cost. NPV > 0 means the investment creat…
O
The Old Tax Regime is the original Indian income tax structure under the Income Tax Act, 1961, which allows taxpayers to…
On-center (abbreviated OC or o.c.) is a construction measurement method where spacing is measured from the center of one…
One-Rep Max (1RM) is the maximum amount of weight you can lift for a single repetition of a given exercise with proper f…
Ovulation is the release of a mature egg (ovum) from one of the ovaries, which then travels down the fallopian tube wher…
The fundamental electrical law stating that voltage equals current times resistance: V = I × R. Governs all DC circuit c…
The degree to which a company uses fixed costs in its operations. High operating leverage means small revenue changes pr…
P
The original sum of money borrowed in a loan or invested. In a loan context, the principal is the amount you owe excludi…
Paying part or all of a loan before its scheduled due date. Prepayment reduces the outstanding principal, leading to les…
A one-time charge by the lender for processing a loan application. Typically 0.5-2% of the loan amount or a flat fee of …
Public Provident Fund — a government-backed savings scheme with a 15-year lock-in offering tax-free returns (currently 7…
A tax levied by state governments on professionals and salaried individuals. Maximum amount: ₹2,500 per year (varies by …
Permanent Account Number — a 10-character alphanumeric identifier issued by the Income Tax Department. Required for fili…
A percentage is a mathematical fraction expressed as a portion of 100, denoted by the percent sign (%). In the world of …
Interest charged on the disbursed loan amount before the full loan is disbursed. Common in under-construction property l…
The exponential growth effect where investment earnings generate their own earnings. ₹10,000 at 12% grows to ₹31,058 in …
The estimated due date (EDD) is the predicted date of delivery, calculated as 280 days (40 weeks) from the first day of …
Power factor (PF) is the ratio of real power (kW, the power that does useful work) to apparent power (kVA, the total pow…
A natural number greater than 1 that has no positive divisors other than 1 and itself.
The mathematical constant approximately equal to 3.14159, representing the ratio of a circle's circumference to its diam…
A fundamental theorem in geometry stating that in a right triangle, the square of the hypotenuse equals the sum of the s…
An ordered arrangement of objects. The number of permutations of n objects taken r at a time is P(n,r) = n! / (n-r)!.
A measure of the likelihood that an event will occur, expressed as a number between 0 (impossible) and 1 (certain).
The stored energy an object has due to its position or configuration. Gravitational PE = mgh (mass × gravity × height).
The rate at which work is done or energy is transferred, measured in watts (W). Power = Work ÷ Time.
Force applied per unit area, measured in Pascals (Pa) or PSI. Pressure = Force ÷ Area. 1 atm = 101,325 Pa = 14.696 PSI.
A logarithmic scale (0–14) measuring the acidity or basicity of a solution. pH = -log[H⁺]. pH 7 is neutral; below 7 is a…
A unit of concentration equal to 1 part in 1,000,000 parts. 1 ppm = 1 mg/L for aqueous solutions. Used for water quality…
The percentage by mass of each element in a chemical compound. Calculated as (element mass in 1 mol / molar mass of comp…
The percentage of revenue that remains as profit after all expenses. Net profit margin = (Net Income / Revenue) × 100.
The time required for an investment to generate enough cash flow to recover the initial investment cost.
Q
R
A method of calculating interest where the interest is computed on the outstanding loan balance after each EMI payment. …
The rate at which the Reserve Bank of India (RBI) lends money to commercial banks. Banks' lending rates are linked to th…
A savings scheme where you deposit a fixed amount every month for a predetermined tenure. At maturity, you receive the t…
The investment strategy behind SIPs where a fixed amount is invested regularly regardless of market conditions. When pri…
The Rule of 72 is a popular, simplified mental math formula used by investors and financial planners to quickly estimate…
Investment returns adjusted for inflation. Real Return = Nominal Return − Inflation Rate. An FD at 7% with 5% inflation …
R-value is a measure of a material's resistance to heat flow (thermal resistance). Higher R-values indicate better insul…
Roof pitch is the steepness or slope of a roof, expressed as the ratio of vertical rise to horizontal run. A 6/12 pitch …
Rebar (reinforcing bar) is ribbed steel bar embedded in concrete to add tensile strength. Concrete is strong in compress…
Resting Heart Rate (RHR) is the number of times your heart beats per minute while at complete rest, best measured first …
Resistance (symbol Ω, ohm) is the opposition to the flow of electric current in a circuit, measured in ohms. Materials w…
The maximum distance an electric vehicle can travel on a single full battery charge, measured in miles. Affected by spee…
A system in EVs and hybrids that recovers kinetic energy during braking and converts it back to electrical energy stored…
A profitability metric measuring the percentage return on an investment relative to its cost: ROI = (Net Profit / Cost o…
A measure of financial performance: net income divided by shareholders' equity, showing how effectively a company genera…
The total income generated from sales of goods or services before any expenses are deducted. Also called the 'top line' …
S
Systematic Investment Plan — a method of investing a fixed amount at regular intervals (typically monthly) in mutual fun…
Interest calculated only on the original principal amount. Unlike compound interest, previously earned interest does not…
A provision under the Income Tax Act allowing a deduction of up to ₹1,50,000 on investments in specified instruments inc…
Tax deduction for health insurance premiums. Self + family: up to ₹25,000. Parents below 60: up to ₹25,000. Parents abov…
Allows deduction of up to ₹2,00,000 on home loan interest for self-occupied property. For rented property, the entire in…
State GST — the portion of GST collected by the State Government on intra-state transactions. Combined with CGST, it for…
Short Term Capital Gains — profit from selling assets held for less than the specified period. STCG on equity (held < 12…
An additional tax levied on taxpayers whose income exceeds certain thresholds. Surcharge is calculated on the income tax…
A tax paid to the state government when purchasing property. Rates vary by state: Maharashtra (5-6%), Karnataka (5%), De…
A flat deduction from salary income, available without any proof of expenditure. ₹75,000 in new regime (increased from ₹…
Tax deduction on interest paid on education loan. No upper limit on the deduction amount (unlike home loan cap of ₹2L). …
Services Accounting Code — used to classify services under GST, similar to HSN codes for goods. 6-digit codes. For examp…
An official document from the bank approving your loan application. Contains: sanctioned amount, interest rate, tenure, …
Square footage (sq ft or ft²) is the measurement of area in imperial units, calculated by multiplying length × width in …
Stud spacing is the center-to-center distance between vertical framing members (studs) in a wall. The two standard spaci…
The slump test is the most common field test used to measure the workability (consistency) of freshly mixed concrete. A …
A statistical measure of the amount of variation or dispersion in a dataset, showing how spread out values are from the …
A value that, when multiplied by itself, gives the original number. The square root of 25 is 5 because 5 × 5 = 25.
The calculation of reactants and products in chemical reactions using balanced equations and molar ratios.
The current battery level expressed as a percentage of total capacity (0–100%), analogous to a fuel gauge in conventiona…
T
Tenure is the total duration or time period over which a loan must be repaid, or an investment matures. For loans, longe…
Tax slabs are the income ranges at which different tax rates apply under India's progressive income tax system. For FY 2…
Tax Deducted at Source — a mechanism where the payer deducts tax before making payment and deposits it with the governme…
A rebate for resident individuals where the entire tax liability is waived if taxable income is ≤ ₹7 Lakh (new regime) o…
Total Daily Energy Expenditure — the total number of calories your body burns in a 24-hour period, accounting for all ac…
Three-phase power is an electrical power distribution system using three alternating currents, each offset by 120 degree…
A rotational force that causes an object to rotate around an axis. Torque = Force × lever arm distance, measured in Newt…
The complete cost of owning a vehicle over its lifetime, including purchase price, fuel/electricity, insurance, maintena…
V
VO2 max (maximal oxygen uptake) is the maximum rate at which your body can consume oxygen during intense exercise, expre…
The volt (symbol V) is the SI unit of electrical potential difference (voltage), representing the pressure that pushes e…
The average of the squared differences from the mean, measuring how far data points are spread out from their average va…
The measure of three-dimensional space occupied by an object, expressed in cubic units (ft³, m³, gallons, liters, etc.).
The rate of change of an object's position with respect to time and direction — speed with a directional component, meas…
W
The Waist-to-Hip Ratio (WHR) is an important anthropometric measurement routinely used by doctors, nutritionists, and fi…
Waist circumference is a simple measurement taken around the natural waistline (typically at the navel level or midway b…
The watt (symbol W) is the SI unit of power, measuring the rate at which electrical energy is consumed or produced. One …
The transfer of energy when a force moves an object over a distance. Work = Force × displacement × cos(θ), measured in j…
The distance between successive crests (or troughs) of a wave, measured in meters. Related to frequency by: λ = c / f.
Weighted Average Cost of Capital — the blended rate a company pays to finance its assets, calculated as the weighted ave…
Current assets minus current liabilities — the capital available for day-to-day operations. Positive working capital ind…