CMBS Debt Yield Calculator
Screen a CMBS loan request against debt yield, max loan proceeds, DSCR, and LTV so the 10% income floor is not a surprise.
Last updated:
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
CMBS lenders rely on debt yield because it ignores appraised value, interest rate, and amortization. It measures income protection against the loan balance.
Last reviewed by Commercial Real Estate Finance Reviewers on .
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
Start with a lender-style example, then adjust the calculator inputs for your deal.
Securitized-loan income floor
CMBS 10% debt yield
- NOI: $1,000,000
- Loan amount: $10,000,000
- Minimum debt yield: 10%
The loan clears a common CMBS debt-yield screen before property type, DSCR, LTV, and reserves are considered.
Loan Sizing Constraints
| 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 |
|---|---|---|
| Strong income cushion | 11%+ | Often easier to size if LTV and DSCR also pass |
| Common CMBS screen | 10%+ | Typical first-pass target |
| Thin for CMBS | 8%-10% | May need lower proceeds or stronger structure |
| High risk | Below 8% | Often difficult without a clear business plan |
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
A 10% debt yield is a common CMBS screening benchmark, though actual requirements vary by lender, asset type, leverage, market, and capital markets conditions.
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.