Mortgage Debt Yield Calculator

Debt yield is cap-rate-independent loan sizing tool — bypasses cap rate compression risk.

NOI

Loan amount

Min debt yield %

Debt yield %

0.10%

Max loan by debt yield

$12,000,000

Passes minimum

Yes

How the math works

Debt yield = NOI / loan. Max loan = NOI / minimum debt yield.

$1.2M / $12M = 10% debt yield. At 10% min: max loan $12M. Passes.

How to Use

Enter noi.
Enter loan amount.
Enter min debt yield %.
Read debt yield %.

Frequently Asked Questions

Debt yield benchmarks?

Conservative permanent: 9–11% debt yield required (CMBS typically). Bridge/transitional: 7–9% (lower at deal, higher at takeout). Multifamily agency (Fannie/Freddie): 7.5–9% for high-LTV deals. Office: 9–12% (more conservative). Industrial: 8–10%. Hospitality: 11–14% (volatility premium). Higher debt yield = more conservative leverage, lower LTV. Calculation: NOI / loan = debt yield. Lenders use this when cap rates are compressed (low rate, low cap = inflated value can mask leverage issues).

How does this debt analysis fit a workout strategy?

Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.

Discounted payoff (DPO) vs forbearance vs deed in lieu?

DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.

Special servicing dynamics?

CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.