
<PAGE>   1
 
                                                                    EXHIBIT 12.1
 
                          CHANCELLOR MEDIA CORPORATION
 
         COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
                           PREFERRED STOCK DIVIDENDS
                                 (IN THOUSANDS)
<TABLE>
<CAPTION>
                                                                                                                  PRO FORMA
                                                                                       ACTUAL SIX   ACTUAL SIX     COMBINED
                                                                                         MONTHS       MONTHS         YEAR
                                                YEAR ENDED DECEMBER 31,                  ENDED        ENDED         ENDED
                                   -------------------------------------------------    JUNE 30,     JUNE 30,    DECEMBER 31,
                                    1992       1993      1994      1995       1996        1996         1997          1996
                                   -------   --------   -------   -------   --------   ----------   ----------   ------------
<S>                                <C>       <C>        <C>       <C>       <C>        <C>          <C>          <C>
Earnings:
  Income (loss) before income
    taxes........................  $(4,989)  $(20,749)  $    39   $(5,658)  $(19,090)   $(20,200)    $ 8,118      $(213,486)
  Fixed charges..................   11,030     15,086    15,252    20,854     40,461      20,124      24,413        235,506
                                   -------   --------   -------   -------   --------    --------     -------      ---------
  Less: Dividends on preferred
    stock of subsidiary..........       --         --        --        --         --          --          --        (59,077)
                                   -------   --------   -------   -------   --------    --------     -------      ---------
  Earnings as adjusted(A)........    6,041     (5,663)   15,291    15,196     21,371         (76)     32,531        (37,057)
                                   =======   ========   =======   =======   ========    ========     =======      =========
Fixed Charges:
  Interest expense...............   10,112     13,878    13,809    19,199     37,527      19,039      22,741      $ 171,326
  Amortization of deferred
    financing costs..............      398        728       712       631      1,113         316         590          1,113
  Dividends on preferred stock of
    subsidiary(1)................       --         --        --        --         --          --          --         59,077
  Rents under leases
    representative of an interest
    factor(2)....................      520        480       731     1,024      1,821         769       1,082          3,990
                                   -------   --------   -------   -------   --------    --------     -------      ---------
Fixed charges as adjusted........   11,030     15,086    15,252    20,854     40,461      20,124      24,413        235,506
Preferred stock dividends(1).....    1,140      7,317     7,431     7,431      5,877       3,715       1,075         39,492
                                   -------   --------   -------   -------   --------    --------     -------      ---------
Total fixed charges and preferred
  stock dividends(B).............   12,170     22,403    22,683    28,285     46,338      23,839      25,488        274,998
                                   =======   ========   =======   =======   ========    ========     =======      =========
Ratio of earnings to combined
  fixed charges and preferred
  stock dividends (A) divided by
  (B)............................       --         --        --        --         --          --        1.28             --
Deficiency of earnings to
  combined fixed charges and
  preferred stock dividends (B)
  minus (A)......................  $ 6,129   $ 28,066   $ 7,392   $13,089   $ 24,967    $ 23,915     $    --      $ 312,055
 
<CAPTION>
                                   PRO FORMA
                                    COMBINED
                                   SIX MONTHS
                                     ENDED
                                    JUNE 30,
                                      1997
                                   ----------
<S>                                <C>
Earnings:
  Income (loss) before income
    taxes........................   $(81,934)
  Fixed charges..................    118,679
                                    --------
  Less: Dividends on preferred
    stock of subsidiary..........    (30,194)
                                    --------
  Earnings as adjusted(A)........      6,551
                                    ========
Fixed Charges:
  Interest expense...............   $ 85,847
  Amortization of deferred
    financing costs..............        558
  Dividends on preferred stock of
    subsidiary(1)................     30,194
  Rents under leases
    representative of an interest
    factor(2)....................      2,080
                                    --------
Fixed charges as adjusted........    118,679
Preferred stock dividends(1).....     19,748
                                    --------
Total fixed charges and preferred
  stock dividends(B).............    138,427
                                    ========
Ratio of earnings to combined
  fixed charges and preferred
  stock dividends (A) divided by
  (B)............................         --
Deficiency of earnings to
  combined fixed charges and
  preferred stock dividends (B)
  minus (A)......................   $131,876
</TABLE>
 
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(1) Represents pretax earnings required to cover preferred stock dividends.
 
(2) Management of Chancellor Media believes approximately one-third of rental
    and lease expense is representative of the interest component of rent
    expense.
