Metrics
What Is Debt Service?
Debt service is the total of a year's principal and interest payments on every loan against a property.
Debt service is what you subtract from NOI to get cash flow, and it is the denominator of DSCR. It depends on the loan amount, interest rate, and amortization, or, on an interest-only loan, simply the loan times the rate. A longer amortization lowers annual debt service, which raises DSCR and lets a property support more debt.
Size it from your loan terms on the commercial mortgage calculator.
See it on a real deal
RVP Underwriter computes this from your documents automatically, with every figure shown and sourced. Underwrite a deal free.
Related terms
Part of the RVP Underwriter glossary of income-property underwriting terms. Browse all definitions, or put them to work with the free calculators.