Debt Yield Calculator
Debt Yield Calculator
Component | Description |
---|---|
Net Operating Income (NOI) | The total income generated from a property, minus operating expenses. |
Loan Amount | The total amount of the loan. |
Debt Yield | A measure of the risk associated with a loan, expressed as a percentage of the property’s net operating income relative to the loan amount. |
Formula | Debt Yield = Net Operating Income / Loan Amount |
Purpose | Used by lenders to assess the risk of a loan, ensuring the property’s income can cover the loan payments. |