Debt yield basics

The formula

Debt yield is NOI ÷ Loan Amount. If NOI is $180,000 and the loan is $2,000,000, debt yield is 9%. The rate does not appear. The amort term does not appear.

That is why CRE desks put it next to DSCR. DSCR moves when you change rate or IO. Debt yield does not. A cheap coupon cannot hide a loan that is large relative to income.

How it sits next to DSCR, LTV, and cap

• DSCR asks whether NOI covers this year’s debt service.
• Debt yield asks whether NOI is large enough for this loan size, regardless of payment.
• LTV asks how much leverage sits on value.
• Cap asks what the market is paying for that NOI.

The CRE Loan & Deal Snapshot shows all four, then an educational max loan = MIN(LTV target, DSCR target, DY target) with a binding-constraint label.

Educational range — not GI policy

The calculator chips a common educational band of roughly 8–10% debt yield. That is a labeled assumption. It is not a GI quote, not a program matrix, and not a credit decision.