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?

**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

**Next, determine the loan amount.**For this example the loan amount will be $100,000.00

**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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