Debt Service
The total amount you have to pay each year on a loan: includes both the interest and paying back the principal. This comes out of your cash flow before you can take any profit.
- How it's worked out
- Annual Principal Repayment + Annual Interest
- Which way is better
- Lower is betterLower is better for cash.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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