Debt Yield Calculator

Enter the net operating income and the loan amount into the calculator to determine the debt yield.

Debt Yield Formula

The following formula is used to calculate a debt yield.

DY = NOI / L

  • Where DY is the debt yield
  • NOI is the net operating income ($)
  • L is the loan amount ($)

Debt Yield Definition

A debt yield is defined as the ratio of net operating income to a total value of a loan.


Debt Yield Example

How to calculate debt yield?

  1. First, determine the NOI.

    Calculate the total net operating income of the business. For this example we will assume the NOI is $50,000.00

  2. Next, determine the loan amount.

    For this example the loan amount will be $100,000.00

  3. Finally, calculate the debt yield ratio.

    Using the formula we find the debt yield to be 50,000/100,000 = .5 .

FAQ

What is debt yield?

Debt yield is a measure of the ratio of net operating income to a specific loan amount.

What is debt yield used for?

Debt yield is used by lenders to analyze the risk of lending money to a business or entity. The higher the ratio, the lower the risk.



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