NOI Calculator
Calculate noi from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate noi from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
How to use the NOI Calculator
- Enter or select annual potential rental income.
- Enter or select annual other income (fees, laundry, parking).
- Enter or select vacancy & credit loss (%).
- Enter or select annual property tax.
- Enter or select annual insurance.
- Enter or select annual maintenance & repairs.
- Enter or select annual management fees.
- Enter or select annual owner-paid utilities.
- Enter or select other annual operating expenses.
- Read the calculated result; change any measurement to compare alternatives.
Formula
effective gross income=(rental income+other income)×(1−vacancy/100); NOI=effective gross income−operating expenses (tax+insurance+maintenance+management+utilities+other); debt service is never an operating expense
- rent
- Annual potential rental income
- other
- Annual other income (fees, laundry, parking)
- vacancy
- Vacancy & credit loss (%)
- tax
- Annual property tax
- insurance
- Annual insurance
- maintenance
- Annual maintenance & repairs
- management
- Annual management fees
- utilities
- Annual owner-paid utilities
- otherExpenses
- Other annual operating expenses
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
Worked example
For noi calculator, the following measurements illustrate the exact method: Annual potential rental income: 36000; Annual other income (fees, laundry, parking): 1200; Vacancy & credit loss (%): 5; Annual property tax: 4200; Annual insurance: 1800; Annual maintenance & repairs: 2400; Annual management fees: 3000; Annual owner-paid utilities: 600; Other annual operating expenses: 0.
Inputs
- Annual potential rental income36000
- Annual other income (fees, laundry, parking)1200
- Vacancy & credit loss (%)5
- Annual property tax4200
- Annual insurance1800
- Annual maintenance & repairs2400
- Annual management fees3000
- Annual owner-paid utilities600
- Other annual operating expenses0
Result
- Effective gross income$35,340.00
- Total operating expenses$12,000.00
- Net operating income (NOI)$23,340.00
- Operating expense ratio (%)33.96
Results explained
- Effective gross income
- Effective gross income from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
- Total operating expenses
- Total operating expenses from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
- Net operating income (NOI)
- Net operating income (NOI) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
- Operating expense ratio (%)
- Operating expense ratio (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. NOI excludes mortgage debt service, income tax, depreciation and capital expenditures; whether to reserve for capital items above the NOI line is a modelling choice — state yours.
Frequently asked questions
NOI = effective gross income − operating expenses. Effective gross income is potential rent plus other income minus vacancy and credit loss; operating expenses are tax, insurance, maintenance, management, utilities and similar day-to-day costs.
No. NOI is measured before debt service so properties can be compared regardless of how they are financed. Subtract the mortgage payment from NOI to get cash flow, not NOI.
Traditionally no — roofs, HVAC replacements and similar capital items sit below the NOI line, though many investors deduct a capital reserve when they underwrite. This calculator follows the traditional treatment; add a reserve to other expenses if you prefer.
Cap rate = NOI ÷ property value. Once you have a reliable NOI you can value the property at a market cap rate (value = NOI ÷ cap rate) or check the cap rate implied by an asking price.
Because you cannot collect rent on empty units. Effective gross income reflects what you actually expect to collect, and expenses are then charged against that realistic figure.