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Debt yield calculator.

Debt yield is the lender’s reality check that ignores rate and amortization: NOI divided by the loan. It sets a floor on how much they’ll lend regardless of how cheap the money is — and it’s often the real constraint.

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Debt yield
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Debt yield = NOI ÷ loan amount. Unlike DSCR and LTV, it ignores interest rate, amortization, and value — so lenders use it as a rate-proof floor. Most banks and CMBS lenders want a minimum around 9–10%; a lower debt yield caps your proceeds even when DSCR and LTV would allow more.

The rate-proof lender test

Debt yield is the lender’s rate-proof test: NOI divided by the loan amount. Unlike DSCR and LTV, it ignores interest rate and amortization entirely, so it can’t be inflated by cheap debt or a long term. That is exactly why lenders rely on it — and why, in low-rate markets, it is often the constraint that actually caps your loan.

Example. A property with $200,000 of NOI supports a $2,000,000 loan at a 10% debt yield ($200,000 ÷ 10%). Even if a low rate and 30-year amortization made DSCR comfortable at a larger loan, a 10% debt-yield floor holds the proceeds at $2,000,000. Raise NOI and the ceiling rises with it.

Frequently asked questions

What is debt yield?
Debt yield is a property’s net operating income divided by the loan amount, expressed as a percentage. A $200,000 NOI on a $1,900,000 loan is about a 10.5% debt yield. It measures the lender’s return if they had to foreclose and own the asset.
Why do lenders use debt yield?
Because it can’t be gamed by low rates or long amortization. DSCR and LTV both improve when rates fall or terms stretch; debt yield doesn’t — it’s pure income over loan. That makes it a stable floor on loan sizing across market cycles.
What is a good debt yield?
Most commercial lenders require a minimum of roughly 9–10%, and stronger for riskier assets. Higher is safer for the lender and means the loan is well-covered by income. If your debt yield is below the lender’s floor, expect a smaller loan.

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Estimates are for planning only and use simplified assumptions — not tax, legal, or investment advice. Verify with your lender, CPA, and a full broker analysis before acting.