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How to use
- Enter Annual NOI.
- Enter Loan balance.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
Debt yield = NOI ÷ loan balance × 100
Example
NOI of 70,000 on a 700,000 loan gives a 10% debt yield.
Important notes
Debt yield is not DSCR. It compares NOI with loan principal, not with periodic debt service.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Debt yield | 70000 ÷ 700000 × 100 | 10 % |
| 56,000 NOI scenario | 56000 ÷ 700000 × 100 | 8 % |
Frequently asked questions
Does debt yield depend on interest rate?
Not directly. The formula uses only NOI and loan balance.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.