Net Operating Income Calculator

Calculate net operating income (NOI) for real estate. Determine property profitability before financing costs.

Net Operating Income (NOI) measures a property's profitability by subtracting operating expenses from gross income. It's a fundamental metric for real estate investment analysis.

Calculator

$
%
$
$
Net Operating Income
$0.00
Effective Gross Income
$0.00
Vacancy Loss
$0.00
Operating Expense Ratio
0.00%

Common use cases

  • Property valuation
  • Investment analysis
  • Expense benchmarking
  • Cap rate calculation

How to use

  1. Enter annual gross rental income
  2. Estimate vacancy rate
  3. Add other income (parking, laundry, etc.)
  4. Input annual operating expenses

FAQ

What expenses are included in NOI?

Property taxes, insurance, utilities, maintenance, management fees, and repairs. Excludes mortgage payments and depreciation.

What's a typical expense ratio?

35-50% is common for residential rentals. Commercial properties may be lower if tenants pay expenses (NNN leases).

How does NOI relate to cap rate?

Cap Rate = NOI ÷ Property Value. NOI is the numerator in cap rate calculations.

This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.