Accounting Dictionary

Debt Service

The amount of money it takes to pay the principal and interest on your loans.

Let’s say your mortgage payment, principal and interest only, is $1000. Your yearly debt service on that mortgage is 12 x $1000 or $12,000. Debt service is a major factor considered by prospective lenders.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top