NOI Calculator

Net operating income is the basis for cap rate, DSCR and property valuation. Everything runs in your browser.

NOI

Gross monthly rent ($)

Other monthly income ($)

Vacancy (%)

Property tax ($/yr)

Insurance ($/yr)

Repairs & maintenance (% of rent)

Management (% of rent)

Owner utilities / HOA ($/mo)

Price (for cap rate) ($)

Results

Effective gross income / yr

Operating expenses / yr

NOI / yr

NOI / month

Cap rate at price

Expense ratio

How NOI is calculated

NOI = effective gross income − operating expenses. Effective gross income is all rent plus other income (parking, laundry, pet fees) minus vacancy and credit loss. Operating expenses include property tax, insurance, repairs, management, owner-paid utilities and HOA dues.

Not included: mortgage principal and interest, depreciation, income tax and capital improvements. That is what makes NOI comparable across buyers with different financing.

Use NOI in the cap rate calculator or the commercial DSCR (NOI ÷ annual debt service).

FAQ

Is the mortgage part of NOI?

No. NOI is before debt service.

Are CapEx reserves in NOI?

Appraisers often exclude them, many investors include a reserve to be conservative. Be consistent when comparing deals.