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Debt Service Calculation: Step-by-Step Guide for Rental Property Investors
Last Updated: April 22, 2025
Understanding Debt Service Calculation
Debt service calculation defines how you assess loan repayment using precise formulas and specific expense categories. In property management and investment, debt service calculation offers a structured approach to evaluate your ability to meet regular loan obligations.
What Is Debt Service?
Debt service refers to the total payments for principal and interest on a loan, including associated costs such as property taxes, insurance, and relevant dues. Debt service calculation, when applied for property income purposes, frequently uses the formula:
