Debt Yield to DSCR Converter
Convert debt yield to DSCR — or DSCR back to debt yield — using the loan constant implied by your interest rate and amortization schedule.
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How it works
Follow the underwriting path lenders use: input the deal, apply constraints, then read the result.
Enter the metric you have
Type a debt yield (%) or a DSCR (x) — whichever your term sheet quotes. Only one is required. If both fields are filled, the converter uses the debt yield and notes that the DSCR input was ignored.
Debt Yield to DSCR Formula
Debt yield and DSCR measure the same income stream against two different denominators: debt yield divides NOI by the loan amount, while DSCR divides NOI by annual debt service. The loan constant — annual debt service divided by loan amount — connects them, provided the same income period, income definition and debt balance are used. See the worked debt yield versus DSCR comparison. Divide debt yield by the loan constant and the loan amount cancels out of the algebra, leaving NOI over debt service, which is DSCR. Multiply a DSCR by the loan constant and you get back to debt yield. That is why the conversion needs a rate and amortization even though debt yield itself ignores loan terms: the constant carries all of the payment information. The identity also explains why the two metrics can disagree about the same deal. Debt yield does not move when rates change, but the loan constant does — so a loan that clears a 10% debt yield floor can convert to a comfortable DSCR at a low rate and a thin one at a high rate, using the exact same NOI and balance.
Read the calculation methodology and limitations.
Loan Constant = Annual Debt Service / Loan Amount
DSCR = Debt Yield / Loan Constant
Debt Yield = DSCR x Loan ConstantAt 6.50% with 30-year amortization the loan constant is about 7.58%. A 10% debt yield converts to roughly 1.32x DSCR (10 / 7.58), and a 1.25x DSCR converts back to about a 9.48% debt yield (1.25 x 7.58).
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.
Screen a CMBS quote
Loan Constant = Annual Debt Service / Loan AmountAt the assumed 10% debt yield, these payment terms imply about 1.32x DSCR. Compare that result with the required DSCR; it does not establish CMBS eligibility.
Underwriting Metric Comparison & Lender Sizing Standards
Compare debt yield against DSCR and LTV constraints, and review typical sizing assumptions across lender types.
One identity, three lender metrics
3 Core Sizing TestsNOI / Loan AmountNo
Annual Debt Service / Loan AmountYes
NOI / Annual Debt Service = Debt Yield / Loan ConstantYes
| Metric | Formula | Sensitive to Rate / Amortization? |
|---|---|---|
| Debt Yield | NOI / Loan Amount | No |
| Loan Constant | Annual Debt Service / Loan Amount | Yes |
| DSCR | NOI / Annual Debt Service = Debt Yield / Loan Constant | Yes |
Common Lender Underwriting Screening Levels & Equivalence
5 Lender Categories1.25x – 1.30x7.50% – 8.50%
1.20x – 1.30x8.50% – 10.00%
1.25x – 1.35x9.50% – 11.00%
1.30x – 1.45x8.00% – 9.50%
1.10x – 1.20x7.00% – 8.50% (Exit)
| Lender / Facility Type | Typical Minimum DSCR | Typical Minimum Debt Yield | Typical Max LTV |
|---|---|---|---|
| Agency Multifamily (Fannie Mae / Freddie Mac) | 1.25x – 1.30x | 7.50% – 8.50% | 75% – 80% |
| Commercial Banks (Balance Sheet) | 1.20x – 1.30x | 8.50% – 10.00% | 65% – 75% |
| CMBS Conduit Loans | 1.25x – 1.35x | 9.50% – 11.00% | 65% – 75% |
| Life Insurance Companies | 1.30x – 1.45x | 8.00% – 9.50% | 60% – 65% |
| Bridge / Private Debt Funds | 1.10x – 1.20x | 7.00% – 8.50% (Exit) | 70% – 80% |
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Debt yield to DSCR | 10% debt yield / 7.58% constant (6.50%, 30-year) | ≈1.32x DSCR |
| DSCR to debt yield | 1.25x DSCR x 7.58% constant (6.50%, 30-year) | ≈9.48% debt yield |
| Interest-only conversion | 10% debt yield / 6.50% constant (interest-only) | ≈1.54x DSCR |
| Higher rate, shorter schedule | 1.20x DSCR x 8.48% constant (7.00%, 25-year) | ≈10.18% debt yield |
| Breakeven debt yield | 1.00x DSCR x 7.58% constant (6.50%, 30-year) | ≈7.58% debt yield — the loan constant itself |
Conversion reference
| Debt Yield | 6.00% / 30-Year | 6.50% / 30-Year | 7.00% / 25-Year |
|---|---|---|---|
| 8% | ≈1.11x | ≈1.05x | ≈0.94x |
| 9% | ≈1.25x | ≈1.19x | ≈1.06x |
| 10% | ≈1.39x | ≈1.32x | ≈1.18x |
| 11% | ≈1.53x | ≈1.45x | ≈1.30x |
| 12% | ≈1.67x | ≈1.58x | ≈1.41x |
Quick facts
- DSCR = debt yield / loan constant. The loan amount cancels out, so no balance is needed to convert.
- On an interest-only loan the constant equals the rate, so DSCR is simply debt yield divided by the rate.
- A 10% debt yield converts to roughly 1.32x DSCR at 6.50% with 30-year amortization.
- Debt yield ignores rate and amortization; DSCR does not. The loan constant carries all of the payment information between them.
- The breakeven debt yield — where DSCR is exactly 1.00x — always equals the loan constant.
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
Divide the debt yield by the loan constant. First derive the constant from the interest rate and amortization (annual debt service per dollar of loan), then divide. At 6.50% and 30-year amortization the constant is about 7.58%, so a 10% debt yield converts to roughly 1.32x DSCR.
Multiply the DSCR by the loan constant. A 1.25x DSCR at a 7.58% constant implies about a 9.48% debt yield. This is a quick way to see what income cushion a DSCR floor really demands.
Debt yield ignores loan terms, but DSCR is built on annual debt service, which depends on both rate and amortization. The loan constant packages those terms into one number, which is why it is the only extra input the conversion requires.
It depends on the loan constant. At 6.00% with 30-year amortization (≈7.19% constant), 10% debt yield converts to about 1.39x. At 6.50% / 30 years (≈7.58%), about 1.32x. At 7.00% with 25-year amortization (≈8.48%), about 1.18x — the same debt yield, materially different coverage.
Interest-only removes principal from the payment, so the loan constant equals the interest rate. A 10% debt yield at a 6.50% interest-only rate converts to about 1.54x DSCR — noticeably higher than the 1.32x an amortizing structure produces at the same rate.
Commercial lenders commonly evaluate both. Banks and agencies typically require a minimum DSCR of 1.20x to 1.30x, while CMBS conduit lenders enforce strict debt yield floors between 9.5% and 11.0%. Because debt yield is independent of interest rates while DSCR shifts with the loan constant, whichever formula produces the lower supported debt amount becomes the binding constraint on loan proceeds.
It is the debt yield at which NOI exactly covers annual debt service — DSCR of 1.00x. Mathematically it always equals the loan constant, so any debt yield below the constant means the property cannot cover its payments at those terms.
The converter uses the debt yield and ignores the DSCR input, and it says so in the results. Clear the debt yield field if you want to convert from DSCR instead.