What is debt yield?
Debt yield is annual net operating income divided by the loan amount, expressed as a percentage. It compares property income with debt principal without using an interest rate or amortization schedule.
US · USDTransparent educational estimate
Debt Yield Calculator
Calculate annual NOI as a percentage of the current or proposed property loan amount. Compare an editable target and reverse-solve the NOI or loan amount that would exactly meet it.
What this baseline models
- Annual NOI and debt in one scenario
- Editable 10% example target
- Required NOI and maximum-loan inverses
- Explicit lender-definition and zero handling
Public calculator · no account required
Compare property income with debt
Compare property income with debt
Enter annual NOI and the current or proposed property loan amount. The target is an editable comparison assumption, not a lender requirement or qualification result.
Debt yield
10.00%
Annual NOI divided by the entered loan amount
Target status
Meets target
Compared with the editable 10.00% target
Maximum loan amount at target
$1,000,000
Annual NOI divided by the selected target
Required NOI at target
$100,000
Entered loan amount multiplied by the selected target
Debt yield detail
The entered amounts, selected target, and modeled distance from that target.
- Annual NOI
- $100,000
- Entered loan amount
- $1,000,000
- Selected target debt yield
- 10.00%
- NOI surplus or shortfall
- $0
- Loan amount difference
- $0
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Assumption checks
Deterministic checks based only on this scenario's inputs and outputs.
Lender definitions and targets vary
Use the NOI convention, debt scope, and target required by the analysis or lender being reviewed. This result is not a loan-qualification decision.
NOI sensitivity
Each row reruns the same formula engine while changing annual NOI by ±5% and ±10%. The loan amount and selected target remain fixed.
NOI sensitivity details
| NOI change | NOI | Debt yield | Maximum loan at target | Target status |
|---|---|---|---|---|
| -10.00% | $90,000 | 9.00% | $900,000 | Below target |
| -5.00% | $95,000 | 9.50% | $950,000 | Below target |
| Base | $100,000 | 10.00% | $1,000,000 | Meets target |
| +5.00% | $105,000 | 10.50% | $1,050,000 | Meets target |
| +10.00% | $110,000 | 11.00% | $1,100,000 | Meets target |
Formula reference
Every output is explainable
Money is displayed in USD and rates are entered as percentages where applicable. Formula version debt-yield@1.0.0 stays attached to the result.
Debt yield
Annual NOI ÷ Loan amount
The property NOI entered for the analysis divided by the current or proposed property loan amount. The ratio is unavailable when the loan amount is zero.
Required NOI at target
Loan amount × Target debt yield
The annual NOI that would exactly produce the selected debt-yield target for the entered loan amount.
Maximum loan amount at target
Annual NOI ÷ Target debt yield
The modeled loan amount that would exactly produce the selected target. It is unavailable when NOI is zero or negative.
NOI surplus or shortfall
Annual NOI − Required NOI
The difference between entered NOI and the NOI required at the selected target. A negative value is a shortfall.
Loan amount difference
Maximum loan amount at target − Entered loan amount
The modeled distance between the target-supported loan amount and the entered loan. A negative value means the entered loan exceeds that modeled amount.
Example scenario
A 10.00% debt-yield example
The default scenario divides $100,000 of annual NOI by a $1,000,000 loan for a 10.00% debt yield. The target is editable and does not represent approval, pricing, or a universal lender rule.
Open the example in the calculatorAnnual NOI
$100,000
Loan amount
$1,000,000
Example target
10.00%
Calculated debt yield
10.00%
FAQ
Common questions
Why does the example use a 10% target?
The 10% value is an editable educational example, not a universal lender threshold. Actual definitions and targets vary by lender, loan, property, market, and underwriting method.
How is debt yield different from DSCR?
Debt yield divides NOI by loan amount. DSCR divides NOI by annual debt service, so DSCR depends on payment terms while debt yield does not directly use interest rate or amortization.
What happens when the loan amount is zero?
The current debt-yield ratio is unavailable because division by zero is undefined. The calculator can still show the target-supported maximum loan when NOI is positive.
Related calculators
Compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.