Calculate debt yield — NOI divided by loan amount — and see the maximum loan a lender preset would support.
What is debt yield?
Debt yield is a lender’s return on the loan if they had to take the keys today — net operating income divided by the loan amount. Unlike DSCR and LTV, it ignores interest rate, amortization, and value, so it can’t be engineered with cheap debt or aggressive appraisals.
A 10% debt yield means a $500,000 NOI supports a $5,000,000 loan. To size to a minimum, divide NOI by the target: $500,000 ÷ 9.0% ≈ $5.56M.
How lenders use it
In a low-rate environment, debt yield is often the constraint that actually binds — it’s the floor that stops proceeds from running away when rates are cheap. Our Loan Sizing tool shows which of DSCR, debt yield, or LTV limits your deal.
See which constraint binds — Loan Sizing →