The short answer
Last updated: July 2026
Calculate effective gross income as potential income minus vacancy and credit loss plus other property income. Subtract normalized operating expenses for NOI. Then calculate cap rate as NOI divided by value, DSCR as NOI divided by annual debt service, and debt yield as NOI divided by loan amount. The tool does not supply lender thresholds.
After the estimate:
Put the result into a reviewed workflowProperty finance scenario
Build NOI once, then calculate four connected metrics.
Keep effective gross income, NOI, cap rate, DSCR, and debt yield tied to one transparent annual input set.
Gross potential income
$
Vacancy & credit loss
$
Other property income
$
Operating expenses
$
Annual debt service
$
Loan balance
$
Property value
$
Input-driven result
Your inputs
Formula
Result below
Effective gross income
$234,000
Net operating income
$140,000
Cap rate
7%
DSCR
1.4x
Debt yield
10%
Your calculation
$240,000 GPI − $18,000 vacancy + $12,000 other income − $94,000 operating expenses = $140,000 NOI.
Estimate based on your inputs. Not a promise of results.
These are planning metrics, not lending thresholds, an appraisal, or an approval. Verify leases, collections, expenses, debt service, balances, value, and each lender’s definitions.
Read the NOI definition
Open DSCR calculator
How it works
How this tool works.
These metrics share inputs. If NOI is overstated, cap rate, DSCR, and debt yield can all look stronger at once. This tool keeps the income bridge visible so a reviewer can inspect the assumptions.
Use annual figures for one consistent period and keep mortgage debt service outside NOI. The OCC warns that underwriting should normalize income and expenses and consider the metrics together.
1
Start with annual gross potential income, vacancy and credit loss, and other recurring property income.
2
Subtract normalized annual operating expenses to calculate NOI.
3
Enter annual debt service, loan balance, and property value for the three ratios.
4
Stress vacancy, expenses, rent, rate, and value; do not treat one ratio as an approval decision.
Make the result useful
One income bridge, four decision metrics
EGI shows income after vacancy and collection loss but before operating expenses. NOI subtracts normalized property operating expenses. Cap rate compares NOI with value, DSCR compares NOI with annual debt service, and debt yield compares NOI with loan amount.
Because the ratios share NOI, a transparent rent roll, trailing income, vacancy record, expense ledger, management assumption, tax and insurance evidence, and reserve treatment matter more than decimal precision.
The assumptions that move this result
Gross potential income
Annual scheduled property income before vacancy and collection loss.
Vacancy and credit loss
Annual reduction for unoccupied space and uncollected income.
Other property income
Supportable recurring income such as parking or laundry.
Operating expenses
Normalized costs of operating the property, before debt service and owner taxes.
Debt, value, and debt service
Separate denominators for DSCR, debt yield, and cap rate.
Calculation lens
EGI = GPI − vacancy/credit loss + other income; NOI = EGI − operating expenses; cap rate = NOI/value; DSCR = NOI/debt service; debt yield = NOI/loan.
Annual property-income and leverage scenarios from user inputs; no market cap rate or lender threshold is supplied.
Read the number in context
Income stress
Increase vacancy and collection loss; reduce uncertain other income.
Expense stress
Update taxes, insurance, utilities, repairs, management, and reserve assumptions.
Debt stress
Use higher annual debt service where a rate can reset or refinance is expected.
The tool does not validate leases, collections, expenses, value, loan balances, program definitions, replacement-reserve treatment, or lender underwriting.
Before you act
• Use one annual period and label actual, budget, or stabilized inputs.
• Reconcile the rent roll, bank deposits, and ledger.
• Normalize vacancy, management, taxes, insurance, repairs, and reserves.
• Keep debt service and owner income tax outside NOI.
• Review cap rate, DSCR, debt yield, LTV, and qualitative risks together.
Illustration
$240,000 GPI − $18,000 vacancy + $12,000 other income − $94,000 expenses = $140,000 NOI. At $2M value, $100K debt service, and $1.4M loan, cap rate is 7%, DSCR is 1.40, and debt yield is 10%.
Questions landlords ask
Questions about this tool and its limits.
Does NOI subtract mortgage payments?
No. Debt service is kept outside property NOI and used separately in DSCR.
What happens if annual debt service is zero?
DSCR is not calculated because division by zero has no meaningful ratio.
Does the calculator determine whether a loan qualifies?
No. Lender definitions, normalization, stress tests, thresholds, and eligibility rules vary.
Keep exploring
More tools for analyze a deal.
Editorial ownership
Written and maintained by the Aptoria editorial team
Content updated August 3, 2026. Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
Primary and authoritative sources
OCC Comptroller's Handbook: Commercial Real Estate Lending 2.0 ↗
NOI, DSCR, debt yield, capitalization-rate analysis, and warnings about normalizing property income and expenses.
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