NOI (Net Operating Income) Calculator
NOI = gross income − operating expenses. Excludes mortgage payments, capex, depreciation, and income tax.
Result
NOI (annual)
$26,200
Effective gross income: $34,200.
- Gross income$36,000
- Vacancy %5.0%
- Effective gross income$34,200
- Operating expenses$8,000
- NOI$26,200
- Operating expense ratio23.4%
Step-by-step
- Effective income = 36,000 × (1 − 0.05) = 34,200.
- NOI = 34,200 − 8,000 = 26,200.
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
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).
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