About this Debt Yield Calculator
Debt yield compares annual NOI to the loan amount. It is a simple leverage metric because it does not depend on interest rate or amortization assumptions.
Who this calculator is for
- Real estate investors screening rental, flip, or refinance scenarios with transparent assumptions.
- Operators comparing user-entered costs, reserves, loan amounts, rents, fees, and rates before deeper diligence.
- Analysts who need deterministic first-pass deal math without hidden market data or lender assumptions.
When to use it
- Screen an acquisition, rehab, flip, BRRRR, or debt scenario before making an offer.
- Stress-test how vacancy, repair contingency, sale fees, financing, reserves, and refinance terms change the outcome.
- Document a simple formula-based estimate before ordering inspections, lender quotes, tax review, or legal review.
How to use this calculator
- Enter the property, rent, cost, fee, reserve, rate, or loan assumptions for the scenario.
- Review the primary output first, then compare supporting outputs to see which inputs drive the estimate.
- Run conservative cases with higher costs, higher vacancy, higher rates, lower rent, lower ARV, or lower refinance proceeds before relying on the result.
Key assumptions
- All costs, rents, ARV, loans, reserves, fees, and rates are user-entered assumptions.
- Calculations are deterministic and do not fetch market rents, tax rules, insurance quotes, lender terms, or property records.
- Results are estimates only and are not financial, tax, legal, lending, appraisal, inspection, or investment advice.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Annual NOI
Net operating income before debt service, income taxes, depreciation, amortization, and capital structure effects.
Loan amount
The principal balance or proposed loan amount being compared with NOI.
Understanding your results
Example scenarios
Planning example
$180,000 of annual NOI and a $1,800,000 loan amount produce a 10% debt yield and $10 of loan amount per $1 of NOI.
Key Features
- Instant Calculation
- Private & Secure
- Mobile Optimized
Things to Keep in Mind
This calculator is a planning model only. It does not predict appreciation, market liquidity, lender approval, tax treatment, insurance availability, permit risk, legal obligations, construction defects, tenant behavior, or final sale price.
Tips & Best Practices
- Keep a conservative case with lower income, higher costs, and longer timelines beside your expected case.
- Separate operating expenses from debt service so NOI, cash flow, and loan metrics remain clear.
- Confirm property condition, title, taxes, insurance, zoning, permits, lending terms, and exit assumptions with qualified professionals.
Glossary of Terms
- NOI
- Net operating income, usually property income minus operating expenses before debt service.
- Debt yield
- Annual NOI divided by loan amount.
- Loan amount per dollar of NOI
- The inverse of debt yield, showing how many dollars of loan are supported by each dollar of NOI.