EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Portfolio Debt Yield Calculator

Debt yield is cap-rate independent leverage measure. This calculator computes portfolio yield.

$
$

Portfolio debt yield

12.36%

NOI per $1M loan

$123,636

Classification

Strong

How the math works

Debt yield = NOI ÷ total loans × 100.

Above 10% portfolio yield gives lenders comfort in any cap-rate environment. Watch for declining debt yield — it signals NOI pressure before LTV-based metrics flag distress.

How to Use

  1. Enter portfolio NOI.
  2. Enter total loan balance.
  3. Read portfolio debt yield.

Frequently Asked Questions

What is debt yield?

NOI ÷ loan balance. Expressed as percentage. Unlike LTV, does not depend on appraised value or cap rate. Pure return to lender on capital.

Lender minimum?

CMBS typically require 8-10% debt yield. Banks 9-11%. Life insurance 9-12%. Lower debt yield = higher leverage relative to operating income.

vs LTV and DSCR?

Debt yield is lender's safest metric. Immune to cap-rate compression (which can inflate LTV-safe loans). High debt yield + high LTV is a warning — value-heavy, income-light.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →