Portfolio Interest Burden Calculator

Interest burden reveals debt stress. This calculator sizes interest as share of NOI.

Annual NOI

Debt balance

Weighted rate

Rate shock (bps)

Interest burden %

79.24%

Stressed burden %

97.81%

Debt yield %

8.08%

How the math works

Burden = debt × rate ÷ NOI. Stressed burden adds rate shock bps. Debt yield = NOI ÷ debt balance.

Burden above 65% is the danger zone where a 100 bps move pushes a portfolio from refinanceable to distressed. Run this quarterly, not annually, during rising-rate periods — rate cap expirations and floating SOFR rolls can shift burden 5-10 pts in a single quarter.

How to Use

Enter annual NOI.
Enter total debt balance.
Enter weighted avg rate %.
Enter forecast rate shock bps.
Read interest burden and stressed burden.

Frequently Asked Questions

Healthy burden?

Multifamily stabilized: 40-55% of NOI. Value-add/bridge: 50-70%. Office/retail: 45-60%. Industrial: 35-50%. Above 70% = meaningful refi risk; above 85% = stressed. Burden is not DSCR — it ignores amortization.

Debt yield vs burden?

Debt yield = NOI ÷ debt balance. Burden = interest ÷ NOI. Both required: debt yield measures lender exposure; burden measures cash flow. Stabilized CMBS requires 8-10% debt yield; bridge may accept 5-7%.

Fixing burden?

Pay down principal with excess cash. Refi to lower rate (timing-dependent). Partial defeasance to reduce debt burden while keeping position. Convert to interest-only during stabilization to shift burden higher (cash relief) at cost of deferred amort.