Debt Yield Calculator

Debt yield is net operating income divided by the loan amount, and it is the third commercial underwriting test after loan to value and debt service coverage. It is the only one of the three that does not move when the interest rate or the amortization period moves, which is exactly why lenders adopted it: stretching amortization lifts DSCR without adding a dollar of income, and a generous appraisal lifts LTV the same way. The second action sizes a loan against all three tests at once and names the one that binds, and the third shows how far income can fall before a lender floor is breached and how much would have to be repaid at a refinancing. Where a property value is given, the identity debt yield equals cap rate divided by loan to value is printed and checked.