FREE DEBT CALCULATOR
Debt Yield Calculator
Measure annual NOI against the outstanding loan balance.
INDICATIVE RESULT
9.38%Annual NOI€750,000
Loan balance€8,000,000
Calculated directly from the assumptions shown.
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How 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.
INVESTMENT USE
How professionals use the result
Use debt yield as a leverage-independent lender risk metric. It does not depend on interest rate or amortization.
Common mistakes
- Using property value as the denominator
- Deducting interest from NOI
- Using peak commitment instead of relevant balance
- Mixing forward and trailing NOI
CLEAR ANSWERS