Calculate debt yield (NOI divided by the loan amount) and see the maximum loan a lender preset would support.
What is debt yield?
Debt yield is the lender’s return on the loan if it 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. For the full background, read our guide What is debt yield?
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 binds. It keeps 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 →