How to Calculate Debt Yield in Commercial Real Estate
A simple, blunt guide on how to calculate debt yield. See the exact formula commercial lenders use, run the numbers, and find out if your deal clears the hurdle.
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Clear, evidence-based guides on Debt Yield Calculator — calculation formulas, worked examples, and the science behind the numbers. Everything you need to read your results with confidence.
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CMBS Debt Yield Requirements: Why the 10% Floor Matters
CMBS lenders often focus on debt yield because it is independent of appraised value, interest rate, and amortization.
CRE Loan Sizing Example: DSCR, LTV, and Debt Yield Step by Step
Walk through a commercial mortgage loan sizing example using DSCR, LTV, and debt yield to find the binding constraint.
Debt Yield vs Cap Rate: The Lender Metric and the Investor Metric
Debt yield and cap rate both use NOI, but cap rate measures asset pricing while debt yield measures lender protection.
Debt Yield vs DSCR: Why the Two Ratios Can Tell Different Stories
Debt yield and DSCR both measure CRE credit risk, but only one depends on loan terms. Learn when each metric controls loan proceeds.
Debt Yield vs LTV: Income Cushion vs Collateral Leverage
Debt yield and LTV are both loan sizing constraints, but one is driven by NOI and the other by property value.
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