Debt Yield Calculator
A debt yield calculator estimates NOI as a percentage of loan amount. It can help compare income support for debt, but it does not replace lender underwriting, DSCR review, appraisal, reserves, or borrower analysis.
Estimates are based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, tax, or lending advice.
Run the number, then pressure-test the assumptions.
A debt yield calculator estimates NOI as a percentage of loan amount. It can help compare income support for debt, but it does not replace lender underwriting, DSCR review, appraisal, reserves, or borrower analysis.
Use this page to understand the metric directionally, then compare it against financing, reserves, repair risk, cash flow, and your own constraints.
Use this working calculator as a starting point, then run the full deal in DealSharp when you need more inputs, side-by-side scenarios, and risk context.
Debt yield = annual NOI / loan amount
If annual NOI is $30,000 and loan amount is $400,000, estimated debt yield is 7.5%.
Assumptions
Debt yield scenario
Estimated outputs
Scenario snapshot
Scenario estimate based on the inputs shown here. Use the full DealSharp app to compare financing, repairs, vacancy, cash flow, and risk assumptions before deciding.
How to read this number
The useful move is not treating one number as a final answer. Use it to decide which assumptions deserve more review, then compare the result against cash flow, financing, reserves, repair risk, and your own constraints.
Inputs required
- Annual NOI after vacancy and operating expenses.
- Loan amount for the purchase or refinance scenario.
- Clear treatment of owner-paid expenses and reserves.
Outputs explained
- Estimated debt yield percentage.
- Income support context for a loan scenario.
- Reminder to compare with DSCR, LTV, and lender requirements.
Assumptions to review
- NOI is modeled before debt service and excludes financing costs.
- Loan amount reflects the scenario being tested.
- The output does not predict lender review outcome.
What this tells you
- Debt yield shows property income relative to the loan balance.
- It can help compare leverage without relying on interest rate or amortization.
- It is often reviewed beside DSCR and LTV.
What this does not tell you
- Debt yield does not include interest rate, amortization, or borrower strength.
- A debt yield estimate can mislead if NOI is overstated or expenses are incomplete.
Common mistakes
- Using gross income instead of NOI.
- Ignoring vacancy, management, reserves, and repairs.
- Treating a debt yield estimate as a loan decision.
FAQ
How is debt yield different from DSCR?
Debt yield compares NOI to loan amount. DSCR compares NOI to debt service, so it changes when rate and amortization change.
Can debt yield confirm financing?
No. It is one underwriting metric. Lenders may also review DSCR, LTV, borrower profile, reserves, collateral, and market risk.
Run the full deal before deciding
This page helps with one metric or workflow. DealSharp is built for full real estate deal analysis: assumptions, financing, cash flow, repair scenarios, DSCR, cap rate, and risk flags based on your inputs.
Open DealSharpDisclaimer
DealSharp provides calculation and scenario-modeling tools for informational purposes only. Outputs are estimates based on your inputs and assumptions. DealSharp does not provide financial, investment, legal, lending, tax, or accounting advice. Verify important decisions with qualified professionals.