Debt Yield Calculator: NOI as a Share of Loan Amount
Work out the debt yield on a commercial real estate loan — the underwriting metric that strips out interest rate, amortization, and property value to test the loan against pure income.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Debt yield | Non-yield share |
|---|---|---|
| $120k NOI · $1.5M loan | 8.00% | 92.00% |
| $80k NOI · $1M loan | 8.00% | 92.00% |
| $450k NOI · $5M loan | 9.00% | 91.00% |
| $60k NOI · $1M loan (stretch) | 6.00% | 94.00% |
How This Calculator Works
Enter annual NOI and the loan amount. The calculator divides one by the other and multiplies by 100 to give debt yield, with the complement shown alongside. The figure is independent of interest rate and term, which is why CMBS lenders use it as a backstop test alongside LTV and DSCR.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A property with $120,000 of NOI against a $1,500,000 loan posts an 8% debt yield. CMBS underwriting commonly targets 8% to 10% minimum debt yield; under 8% signals the loan is too large relative to the income stream, regardless of how the LTV looks on a momentarily high appraisal.
Key Insight
Debt yield rose to prominence after the 2008 financial crisis exposed how LTV and DSCR could be gamed in low-rate environments — both improve when rates fall, even if NOI is stagnant. Debt yield ignores rates entirely: it asks 'how much income does this loan produce relative to its size?' A 6% debt yield is a 6% debt yield whether rates are 3% or 8%.
Frequently Asked Questions
How is debt yield calculated?
Divide annual NOI by the loan amount, then multiply by 100. $120,000 of NOI on a $1.5M loan is an 8% debt yield.
Why use debt yield instead of LTV or DSCR?
LTV depends on appraisal (which can spike with low rates); DSCR depends on interest rate (which inflates DSCR when rates are low). Debt yield uses only NOI and loan balance — neither can be gamed by financing assumptions.
What is a healthy debt yield?
CMBS lenders commonly underwrite to 8% to 10% minimum debt yield. Class A office and apartments often clear 10%+; tertiary markets and stretch loans frequently sit below 8%. The threshold varies by property type and market.
How is debt yield used in loan sizing?
Lenders set a minimum debt yield (e.g. 9%) and back into the maximum loan size: max loan = NOI / minimum debt yield. A property with $120k NOI under a 9% minimum supports at most $1.33M of debt regardless of LTV.
Is debt yield used outside commercial real estate?
Rarely. The metric is specific to commercial real estate, particularly conduit (CMBS) lending. Corporate debt uses interest coverage and leverage ratios; consumer mortgages use LTV and DTI.
Related Calculators
Methodology & Review
Debt yield is annual net operating income divided by the loan amount, multiplied by 100. The complement reads as the non-yielding share of the loan against NOI. Unlike DSCR and LTV, debt yield is independent of interest rate and amortization — a pure measure of NOI strength relative to the loan.
Written by Ugo Candido · Last updated May 17, 2026.