Definition
The total principal and interest payments required on a loan over a given period.
Example
Annual debt service of $71,400 against $96,000 of NOI produced a 1.34× coverage ratio.
Related terms
Frequently asked questions
What does Debt Service mean in real estate?
The total principal and interest payments required on a loan over a given period.
How is Debt Service used in practice?
Annual debt service of $71,400 against $96,000 of NOI produced a 1.34× coverage ratio.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.