What is Debt Service?
If you are utilizing a loan to finance the purchase of your rental properties, your property will have a Debt Service that needs to be paid. Debt Service is the total amount paid in interest and principal on a monthly and annual basis.
How to Calculate your Debt Service
There are a few different variables that are used to calculate your monthly and annual Debt Service.
Although, we could show you the complicated formula used to calculate the monthly interest & principal payments, it's probably best to just use a mortgage calculator or our Free Rental Property Spreadsheet.
- Loan Amount
- LTV Ratio or Down Payment Amount
- Loan Term
- Loan Interest Rate
Although, we could show you the complicated formula used to calculate the monthly interest & principal payments, it's probably best to just use a mortgage calculator or our Free Rental Property Spreadsheet.
Download our Free Rental Property Spreadsheet to Calculate your Rental Property Debt Service and Analyze the Rental Cash Flow for your Rental Properties.
