Debt Yield Formula

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Debt Yield measures the relationship between the property's net operating income (NOI) and the amount of debt financing obtained for the property. Check FAQs
DY=NOILoan Amt
DY - Debt Yield?NOI - Net Operating Income?Loan Amt - Loan Amount?

Debt Yield Example

With values
With units
Only example

Here is how the Debt Yield equation looks like with Values.

Here is how the Debt Yield equation looks like with Units.

Here is how the Debt Yield equation looks like.

50Edit=50000Edit1000Edit
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Debt Yield Solution

Follow our step by step solution on how to calculate Debt Yield?

FIRST Step Consider the formula
DY=NOILoan Amt
Next Step Substitute values of Variables
DY=500001000
Next Step Prepare to Evaluate
DY=500001000
LAST Step Evaluate
DY=50

Debt Yield Formula Elements

Variables
Debt Yield
Debt Yield measures the relationship between the property's net operating income (NOI) and the amount of debt financing obtained for the property.
Symbol: DY
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Net Operating Income
Net Operating Income is a calculation used to analyze real estate investments that generate income. It equals all revenue from the property minus all reasonably necessary operating expenses.
Symbol: NOI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Loan Amount
The Loan Amount is the original principal on a new loan or principal remaining on an existing loan.
Symbol: Loan Amt
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Financial Institutions Management category

​Go Net Worth
NW=TA-TL
​Go Net Interest Margin
NIM=NIIAIEA
​Go Operational Efficiency Ratio
OER=OPEX+COGSNS
​Go Loan Loss Provision Coverage Ratio
LLPCR=EBT+LLPNCO

How to Evaluate Debt Yield?

Debt Yield evaluator uses Debt Yield = Net Operating Income/Loan Amount to evaluate the Debt Yield, The Debt Yield formula is defined as a financial metric used in real estate finance to evaluate the risk associated with a commercial real estate investment. Debt Yield is denoted by DY symbol.

How to evaluate Debt Yield using this online evaluator? To use this online evaluator for Debt Yield, enter Net Operating Income (NOI) & Loan Amount (Loan Amt) and hit the calculate button.

FAQs on Debt Yield

What is the formula to find Debt Yield?
The formula of Debt Yield is expressed as Debt Yield = Net Operating Income/Loan Amount. Here is an example- 50 = 50000/1000.
How to calculate Debt Yield?
With Net Operating Income (NOI) & Loan Amount (Loan Amt) we can find Debt Yield using the formula - Debt Yield = Net Operating Income/Loan Amount.
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