Investor Tools
Debt Yield Calculator
Enter annual NOI and a loan amount to calculate debt yield.
Illustrative example
A 10.00% debt yield
With illustrative annual NOI of $500,000 and a $5,000,000 loan amount, debt yield is $500,000 ÷ $5,000,000 × 100 = 10.00%.
How to use the result
Review debt yield alongside the NOI methodology, DSCR, leverage, property condition, market evidence, and the proposed loan structure. There is no universal minimum that applies to every lender, property, or transaction.
Frequently asked questions
What does debt yield measure?+
Debt yield compares annual net operating income with the loan amount. The formula is annual NOI divided by loan amount, expressed as a percentage.
Does debt yield include interest rate or amortization?+
No. Debt yield does not directly use interest rate, amortization, or scheduled debt service. Those financing terms affect other measures, including DSCR and payment analysis.
How is debt yield different from DSCR and LTV?+
Debt yield compares NOI with loan principal. DSCR compares income with debt service, while LTV compares loan amount with property value.
Is there one minimum debt yield for every commercial loan?+
No. Standards vary by lender, property type, market, loan structure, business plan, and transaction. This calculator does not determine approval or eligibility.
Keep exploring
Continue the commercial property analysis
Review how lenders establish NOI, compare debt yield with other metrics, and evaluate the full financing structure.
Debt Yield in Commercial Real Estate
Understand the metric, its limitations, and how lenders use it with DSCR and leverage.
Multifamily Financing: An Investor Guide
Connect NOI, valuation, debt yield, DSCR, reserves, due diligence, and loan structure.
Investment Property Loans
Explore Pillar’s financing page for multifamily and commercial investment scenarios.