Debt Yield
Debt yield = NOI / loan, the lender return that ignores rate and amortization and often caps the loan in tight credit.
Example
You enter
- Solve for yield
- Net operating income ($/yr) 120000
- Loan amount ($) 1500000
You get
- Debt yield (%) 8
Details, formula, and sources
Debt yield = NOI / loan, the lender return that ignores rate and amortization and often caps the loan in tight credit; or the max loan a target debt yield supports. NOI $120K on a $1.5M loan = 8.0%; a 10% floor caps the loan at $1.2M. The lender governs the floor.
DY = NOI / loan x 100 (%); max_loan = NOI / (DY_min/100).
The commercial-real-estate debt-yield definition used by CRE lenders, by name.
Debt yield is a standard CRE underwriting ratio defined in lender guidance and CRE finance references. The lender governs the required minimum.
Estimate. AHJ and licensed professional govern.
Field names used by the API: mode, noi, loan, debt_yield_pct
- Definition DY = NOI / loan; max_loan = NOI / DY_minCRE lender underwriting
- Leverage-independent ignores rate, amortization, and cap rateCRE finance
- Screen only a loan-sizing screen, not the DSCR/LTV constraints or a full underwritescope of this tile