NOI Calculator
Calculate Net Operating Income for rental and commercial properties. Essential for cap rate calculations and investment analysis.
Total monthly rental income
Parking, laundry, storage fees, etc.
Expected vacancy percentage
Net Operating Income
Income Breakdown
Expense Summary
Note: NOI does NOT include mortgage payments, capital expenditures, or income taxes. Only include operating expenses.
How It Works
1. Enter Income Details
Input monthly gross rent, other income sources, and expected vacancy rate for the property.
2. Add Operating Expenses
Enter monthly costs for taxes, insurance, maintenance, management, and utilities.
3. Get NOI Results
Instantly see monthly and annual NOI, expense ratio, and effective gross income.
Understanding NOI
The NOI Formula
Effective Gross Income = Gross Income - Vacancy Loss
NOI = Effective Gross Income - Operating Expenses
What's Included in Operating Expenses?
What's NOT Included?
Frequently Asked Questions
Free NOI Calculator for Real Estate Investors
Net Operating Income (NOI) is one of the most important metrics in real estate investing. Our free NOI calculator helps you quickly determine a property's operating income by subtracting operating expenses from effective gross income. Whether you're analyzing a potential investment, preparing for a real estate exam, or evaluating your current portfolio, this tool provides the insights you need.
Why NOI Matters in Real Estate
NOI is the foundation for several critical investment calculations. It's used to determine cap rate (NOI divided by property value), which helps compare investments. Lenders use NOI to calculate Debt Service Coverage Ratio (DSCR) when qualifying commercial loans. And investors use NOI to value properties using the income capitalization approach.
Operating Expenses: What Counts
Only operating expenses are included in NOI calculations - not financing costs or capital expenditures. Operating expenses include property taxes, insurance, maintenance, property management fees, utilities (if owner-paid), and HOA fees. Mortgage payments, major renovations, and income taxes are excluded because they vary by investor, not by property.
Using NOI for Investment Decisions
A strong NOI indicates a property's ability to generate income from operations. Compare NOI across similar properties to identify the best investment opportunities. Track NOI over time to measure property performance and identify areas for improvement. Remember that increasing NOI through higher rents or lower expenses directly increases property value in the eyes of investors and appraisers.
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