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noun A1 Beginner Uncommon

haircut

HEH-uh-kuht

Haircut (noun) means the act of trimming or styling someone's hair, or the resulting style. Example: “He got a fresh haircut before the job interview.”

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noun
1
The act of trimming or styling someone's hair, or the resulting style.
"He got a fresh haircut before the job interview."
"Her new haircut made her look years younger."
2
In finance, a reduction in the value of an asset or in the amount creditors are repaid.
"Bondholders were forced to accept a 30% haircut on their investment."
"The bank applies a haircut to risky collateral before lending against it."

How to use haircut

Learner’s notes

In plain EnglishEither a trim/style of your hair, or, in finance, a cut taken off the value of an asset or debt.

When to use it

The financial sense is common in banking and investing contexts, not everyday conversation.

Common pairings
get a haircut a bad haircut take a haircut on the loan
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Word forms

haircutted past tense, haircuts plural, haircuts singular

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Fill the gap

Can you complete this real example?

He got a fresh _____ before the job interview.

Etymology

A plain combination of "hair" and "cut." The financial meaning developed later as a figurative extension — a "trim" taken off an asset's value.

Related words

Frequently asked questions

What does “haircut” mean?

The word “haircut” means the act of trimming or styling someone's hair, or the resulting style. In plain terms, either a trim/style of your hair, or, in finance, a cut taken off the value of an asset or debt.

How do you pronounce “haircut”?

“Haircut” is pronounced HEH-uh-kuht (/ˈhɛə(ɹ)kʌt/ in IPA).

How do you use “haircut” in a sentence?

Here is “haircut” used in a sentence: “He got a fresh haircut before the job interview.”

What part of speech is “haircut”?

“Haircut” is a noun.

Is “haircut” a common word?

“Haircut” is an uncommon word in modern English, usually learned at around the A1 level.

How many meanings does “haircut” have?

“Haircut” has 2 distinct senses listed in this dictionary. The most common is: the act of trimming or styling someone's hair, or the resulting style.

What does haircut mean in finance?

In finance, a haircut refers to a reduction in the value of an asset or in the amount creditors are repaid, often applied when valuing collateral or restructuring debt. This figurative use extends the idea of "trimming" from the everyday sense of cutting hair.

What is the difference between a haircut and a hairstyle?

A haircut refers to the act of trimming someone's hair or the resulting style right after cutting, while a hairstyle can refer more broadly to how hair is arranged, styled, or maintained over time, including without any cutting involved.

Why do financial losses get called a haircut?

The term draws a metaphor from the everyday sense of a haircut as a trim: just as a haircut removes a portion of hair, a financial haircut removes a portion of an asset's value or a creditor's expected repayment.

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Definitions: FreeDict original editorial