CMBS Debt Yield Calculator
Test a CMBS loan request using your income definition and quoted debt-yield target, then compare DSCR and LTV constraints.
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How it works
Follow the underwriting path lenders use: input the deal, apply constraints, then read the result.
Enter NOI and loan amount
CMBS debt yield starts with annual NOI divided by the proposed loan balance.
CMBS Debt Yield Formula
Debt yield compares annual income with loan balance, independently of rate, amortization and value. Read how to test a quoted CMBS floor and confirm which income adjustments apply.
Read the calculation methodology and limitations.
Debt Yield = NOI / Loan Amount
Max CMBS Loan = NOI / Minimum Debt Yield$900,000 of NOI at a 10% debt-yield floor supports a $9,000,000 CMBS loan before other constraints are applied.
See This Calculator in Action
Explore institutional underwriting examples. Load any scenario into the live calculator with one click to customize rates, amortization, and property valuation.
Assumed 10% debt yield
NOI Ă· Loan Amount = Debt YieldThe loan meets the assumed 10% target; other underwriting tests remain separate.
Underwriting Metric Comparison & Lender Sizing Standards
Compare debt yield against DSCR and LTV constraints, and review typical sizing assumptions across lender types.
Loan Sizing Constraints
3 Core Sizing TestsNOI / Minimum Debt YieldIncome cushion
(NOI / Minimum DSCR) / Loan ConstantPayment coverage
Value x Max LTVCollateral leverage
| Constraint | Formula | What It Protects |
|---|---|---|
| Debt Yield | NOI / Minimum Debt Yield | Income cushion |
| DSCR | (NOI / Minimum DSCR) / Loan Constant | Payment coverage |
| LTV | Value x Max LTV | Collateral leverage |
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Clears 10% floor | $1,100,000 NOI / $10,000,000 loan | 11.00% debt yield |
| Below CMBS screen | $700,000 NOI / $8,500,000 loan | 8.24% debt yield |
| Reverse sizing | $850,000 NOI / 10% minimum | $8,500,000 max loan |
Conversion reference
| Scenario | Debt Yield | Interpretation |
|---|---|---|
| Above assumed target | 11% | Exceeds this example target by 1 percentage point |
| At assumed target | 10% | Meets only this modeled test |
| Below assumed target | 9% | Lower balance or higher income is needed for this test |
| Further below assumed target | 8% | Does not meet this example target |
Quick facts
- CMBS lenders often use debt yield as a hard income-based sizing check.
- A 10% debt yield is equivalent to a max loan of roughly 10 times NOI.
- Debt yield does not improve when the interest rate or amortization changes.
- Final CMBS proceeds still depend on DSCR, LTV, reserves, property type, and market risk.
Editorial Team
Commercial Real Estate Finance Reviewers
- Calculations reviewed against standard CRE lending formulas for DSCR, LTV, cap rate, and debt yield
- Methodology cross-checked against lender-style loan sizing using NOI, value, loan constant, DSCR, LTV, and debt yield
Our editorial team builds and reviews commercial real estate finance calculators around the way lenders actually size debt: property income, collateral value, annual debt service, and lender risk thresholds. Results are educational screening estimates, not loan quotes, tax advice, legal advice, or a commitment to lend.
Methodology: formulas are calculated from borrower-entered inputs using standard CRE underwriting relationships for NOI, debt yield, DSCR, LTV, cap rate, loan constant, and maximum loan proceeds.
Reviewer note: pages are reviewed for formula accuracy and updated when lender benchmarks or site methodology changes.
Disclaimer: results are educational estimates only and are not financial, legal, tax, valuation, or lending advice.
Frequently asked questions
Confirm the originator’s quoted target and income definition. This calculator does not establish a universal CMBS minimum; its 10% default is illustrative.
Divide NOI by the lender's minimum debt yield. At a 10% minimum, $850,000 of NOI supports about $8,500,000 of loan proceeds.
Debt yield gives bond investors and originators a loan-balance-to-income risk measure that is not affected by rate, amortization, or appraisal assumptions.