Debt yield
Debt yield is net operating income divided by the loan amount. It tells a lender what cash return the property produces on each dollar lent, before considering rate or amortization.
Formula
Debt Yield = Net Operating Income / Loan AmountWhy lenders like it
Unlike DSCR and LTV, debt yield does not move when interest rates fall or amortization stretches, and it does not depend on a cap rate or appraised value. That makes it a clean, manipulation-resistant measure of leverage. A common floor is around 10%, but the threshold depends on asset type and your credit policy.
Why it matters
Debt yield is the backstop check. A deal can look fine on DSCR because rates are low and on LTV because the cap rate is aggressive, yet still be over-levered on debt yield. Underwriters use it to catch exactly that.
How vishwa.ai calculates debt yield
vishwa.ai computes NOI from the spread operating statement and divides by the proposed loan amount, reporting debt yield next to DSCR and LTV so the full leverage picture is visible at a glance, with each input traceable to source.
