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Debt Yield Calculator

Debt yield is the rate-and-amortization-independent test commercial lenders use to size loans. This calculator returns the debt yield, the lender check, and the max loan amount at the lender's minimum.

Annual NOI

Loan amount

Lender minimum debt yield

Debt yield

9.24%

NOI / loan amount

Lender check

Passes

vs 9.00% minimum

Max loan at min DY

$538,889

Headroom or shortage

$13,889

headroom for more loan

Why debt yield matters

Debt yield is independent of interest rate and amortization — it tests whether the property's NOI alone could service the debt at any rate environment. CMBS and life-co lenders use it to size loans alongside DSCR and LTV.

Common minimums: 8–9% for stabilized multifamily, 10%+ for retail/industrial, 11%+ for office in current cycles. Lower-quality assets and higher-vacancy markets trigger higher minimums.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Debt Yield Calculator is built to give a quick, browser-based estimate for debt yield. Debt yield is the rate-and-amortization-independent test commercial lenders use to size loans. This calculator returns the debt yield, the lender check, and the max loan amount at the lender's minimum. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the debt yield result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this debt yield estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter the property's annual NOI (use the NOI calculator if you need to build it).
Enter the requested loan amount.
Enter the lender's minimum debt yield — typically 8–11% depending on asset class.
Read the debt yield, whether it passes, and the headroom or shortage vs the minimum.

Frequently Asked Questions

What is debt yield?

Debt yield = annual NOI ÷ loan amount. It measures the return the lender would earn on the loan if they had to take the property back at the loan balance, before factoring in their own cost of capital.

Why do lenders use it instead of just DSCR?

DSCR depends on rate and amortization, both of which can fluctuate or be gamed (longer amortization = lower payment = higher DSCR). Debt yield doesn't — it's a rate-independent test of whether the property is overlevered.

What's a typical minimum?

8–9% for stabilized multifamily, 10–11% for retail and industrial, 11%+ for office in current cycles. Higher-risk assets and softer markets push minimums up.

How does this relate to cap rate?

Cap rate is NOI ÷ value. Debt yield is NOI ÷ loan. If LTV is 75%, debt yield = cap rate ÷ 0.75. So a 6% cap rate at 75% LTV produces an 8% debt yield.