Formula

Total Debt Service Formula: Understanding & Calculating DSCR for Forex Trading

5 min read

The Total Debt Service (TDS) formula is an essential part of understanding foreign exchange (forex) markets. It is used to measure the total amount of interest paid for a loan as a percentage of total income. The TDS formula takes into account the current market rate of interest, the length of time the loan is being made for, and the amount of income paid.The TDS formula is important to understand because it can show the level of financial risk associated with a loan. As a borrower, understanding this formula can help keep debt levels in check and ensure that payments are made on time. By keeping the TDS formula in mind, forex traders are better able to evaluate debt levels and potential risks associated with various loan options.