NOI (Net Operating Income) Calculator

NOI = gross income − operating expenses. Excludes mortgage payments, capex, depreciation, and income tax.

Inputs

Taxes, insurance, maintenance, mgmt, utilities — NOT mortgage.

Result

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General calculation reads

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How to use this calculator

  • Enter gross potential rent (annual).
  • Enter vacancy % (typically 5-8% in stable markets).
  • Enter total operating expenses.

About this calculator

NOI is the property's operating profit before financing and tax. Subtract operating expenses (taxes, insurance, maintenance, property management, utilities, vacancy allowance) from gross income. Importantly EXCLUDES mortgage payments (financing), capital expenditures (capex), depreciation (non-cash), and income tax. Used as the numerator in cap rate and DSCR.

Frequently asked

What counts as operating expenses?+
Property taxes, insurance, regular maintenance, property management, utilities (if landlord pays), HOA, leasing/marketing, vacancy reserves. NOT mortgage P&I, NOT depreciation, NOT capex (roof, AC).
Why exclude mortgage?+
Because NOI is meant to be financing-neutral. Cap rate (NOI / value) lets you compare properties regardless of how each is financed.
What vacancy % to use?+
Typical stable markets: 5%. Newer/rough areas: 8-10%. Class-A urban: 3-5%. Use trailing actual if known.
Capex vs operating expense?+
Operating = recurring small repairs and routine. Capex = roof, HVAC, foundation — long-life capital improvements. Many investors set aside 5-10% of gross for capex separately.
NOI vs cash flow?+
NOI ignores mortgage. Cash flow = NOI − mortgage P&I. Same property gives different numbers; both are useful.

Related calculators

Cap Rate Calculator
Capitalization rate = NOI / Property Value × 100. Property's annual return excluding financing.
Cash-on-Cash Return Calculator
Annual pre-tax cash flow / total cash invested × 100. Measures return on actual money in.
Gross Rent Multiplier (GRM) Calculator
GRM = property price / gross annual rent. Quick screening metric (lower is better).
DSCR (Debt Service Coverage Ratio) Calculator
DSCR = NOI / annual debt service. Lenders typically require ≥ 1.20-1.25.
Rental Property ROI Calculator
Total return = (cash flow + appreciation + principal pay-down + tax benefit) / cash invested. The full picture.
50% Rule Calculator
Rule of thumb: operating expenses ≈ 50% of gross rent. Quick NOI estimator.

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