The principal and interest payments due on a property’s loan during a period.
What debt service means in practice
Debt service is a financing cost, not an operating expense in the standard NOI calculation. Tracking it separately helps owners distinguish property performance from the effects of leverage.
Example
A property’s mortgage requires $1,200 per month in principal and interest, or $14,400 of annual debt service.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.