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Debt Yield Calculator
Measure unlevered property income relative to the lender's loan exposure.
Debt Yield Calculator
Enter your numbers and the result updates straight away.
Outputs
Planning estimate only. Verify assumptions before making a financial decision.
$180,000 of annual NOI on a $2,000,000 loan produces a 9% debt yield.
How this calculation works
The calculation divides stabilized annual property NOI by current or proposed loan principal. It does not use interest rate, amortization, or property value.
How to interpret the result
Use lender-consistent NOI with realistic vacancy, management, maintenance, and reserves. Debt yield is distinct from DSCR and loan-to-value.
Limitations
Results are educational planning estimates. They do not include every tax, legal, accounting, financing, or business-specific consideration and are not professional advice.
Sources and further reading
Formula and example
$180,000 of annual NOI on a $2,000,000 loan produces a 9% debt yield.
Common use cases
- Screen commercial real-estate leverage.
- Compare loans independent of rate.
- Stress stabilized NOI.
Debt Yield Calculator FAQ
How is debt yield calculated?
The calculation divides stabilized annual property NOI by current or proposed loan principal. It does not use interest rate, amortization, or property value.
What should I check before using the result?
Use lender-consistent NOI with realistic vacancy, management, maintenance, and reserves. Debt yield is distinct from DSCR and loan-to-value.
Does this calculator provide financial advice?
No. It applies the stated formula to your inputs for educational planning. Validate definitions, timing, accounting treatment, and assumptions before acting.