Debt yield calculator
Size a commercial real estate loan on income alone, independent of interest rate and amortization.
- Debt yield
- 10.4%
- Meets your minimum
- 9% required
- Largest loan at your minimum
- $5,777,778
How to use it
Debt yield = Net operating income / Loan amount
- Use stabilized net operating income after a vacancy and management allowance.
- Debt yield ignores rate and term, which makes it a useful check when rates move.
- Enter your minimum debt yield to see the maximum loan the income supports.
For illustration only. Use your institution's own policy definitions.
