The word capital, in politics/geography, refers to the town or city that is the official center of a country’s government:
The word capitol is very specific – it refers to a building or complex of buildings where the government meets to make laws.
The capitol building in the U.S.
In economics, the word capital refers to wealth (money and/or property) belonging to a person or company. A business that is just beginning needs start-up capital (an amount of money to get started).
We also have capital letters (ABC) – the big letters that are different from lowercase letters (abc).
Capital and capitol are pronounced the same.