Definition: Debt service for a real estate investment property is the total of annual costs in principal, interest and charges related to the mortgage.
Examples:
If a real estate investment property has a $150,000 mortgage at an annual rate of 7% interest, the principal and interest payment would be approximately $998 per month. If there are no other costs related to the mortgage, then the debt service for that year is $998 X 12, or $11,976.
