Commercial underwriting tool
Commercial debt yield calculator
Compare property NOI with the proposed loan amount. The calculator reports the ratio only; it does not apply a lender minimum, size a maximum loan or decide whether financing is acceptable.
Core formula: Debt Yield = Net Operating Income (NOI) ÷ Loan Amount. The quotient is shown as a percentage.
What debt yield measures
Debt yield compares NOI directly with debt. Unlike a payment-based coverage ratio, the basic debt-yield formula does not use the interest rate or amortization schedule.
Why this calculator does not show a required minimum
Debt-yield expectations can vary with lender policy, property type, market conditions and transaction risk. A website-wide minimum would create false certainty, so this tool reports the ratio without converting it into an approval decision.
How it differs from DSCR and LTV
DSCR compares qualifying cash flow with debt service. LTV compares debt with property value. Debt yield compares NOI with the loan amount. Looking at them together can show different dimensions of the same financing request.
Related commercial mortgage education
Read the commercial debt-yield guide →
Read the commercial DSCR guide →