Debt Yield Calculator
Measure annual NOI against the outstanding loan balance.
This income-to-debt ratio is independent of interest rate and amortisation.
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Get the model · €49 incl. VATHow the Debt Yield calculation works
Debt yield = annual NOI ÷ outstanding loan balance.
Example calculation
€750k of annual NOI on an €8.0m loan equals 9.38% debt yield.
How professionals use the result
Use debt yield to assess loan size against property income. It depends on leverage, but is independent of the interest rate and amortisation schedule.
Common mistakes
- Using property value as the denominator
- Deducting interest from NOI
- Using peak commitment instead of relevant balance
- Mixing forward and trailing NOI
Debt Yield Calculator FAQs
What does the Debt Yield calculator measure?
Measure annual NOI against the outstanding loan balance.
What formula does the Debt Yield calculator use?
Debt yield = annual NOI ÷ outstanding loan balance.
Is the result suitable for a final investment decision?
Use it as a transparent screening calculation. Validate deal-specific tax, timing, financing and legal assumptions in a complete underwriting model before making a decision.
Do I need an account?
No. The calculator is free and runs in your browser. FormulaPlanet does not store your projects, inputs or results.
Is any input sent publicly?
No calculation is public by default. A shareable link is only created when you explicitly choose to copy one; that link contains the assumptions shown in its URL.
Why might my spreadsheet give a different answer?
Differences usually come from timing, compounding, sign conventions, fees or a different definition of the numerator or denominator. Match every period and definition before comparing.
What should I review alongside this result?
Use debt yield to assess loan size against property income. It depends on leverage, but is independent of the interest rate and amortisation schedule.
Which mistakes are most common?
Using property value as the denominator; Deducting interest from NOI; Using peak commitment instead of relevant balance; Mixing forward and trailing NOI.