| The values which are passed to the function from the main program at the time of its call are known as Actual Parameters. | The variables declared in the function header which receive the values from its caller program are known as Formal Parameters. |
| They are also known as Arguments. | They are also known as Parameters. |
| They appear in the function call statement in the main program. | They appear in the function header (function definition). |
Example: In Calculate(12, 8), the values 12 and 8 are actual parameters. | Example: In def Calculate(l, b):, the variables l and b are formal parameters. |