Calculate debt yield for real estate investments and properties
Enter NOI and total loan amount. The calculator divides NOI by loan amount to show the debt yield percentage, a lender risk metric.
With $180,000 NOI on a $2,000,000 loan, the debt yield is 9% ($180,000 รท $2,000,000), showing how quickly the property could pay off the loan.
NOI divided by loan amount, showing the lender's return if they had to foreclose immediately. It measures risk independent of interest rates or term.
Most lenders require 9-10% minimum debt yield for commercial properties. Higher debt yield indicates lower risk from lender perspective.
DSCR measures ability to make current payments; debt yield measures time to recover principal if foreclosed. Both are important underwriting metrics.