NOI Calculator
Calculate net operating income from gross rent, vacancy, and expenses.
What this tool does
Calculate Net Operating Income (NOI) for income-producing properties. NOI is gross rental income minus vacancy and operating expenses, before debt service and income taxes.
How to use
- Enter gross annual rental income.
- Add vacancy rate and annual operating expenses.
- Review NOI and use with the cap rate or DSCR calculators.
Formula
NOI = gross income − vacancy loss − operating expenses
Examples
Small multifamily
Input: Gross: $60,000, Vacancy: 5%, Expenses: $12,000
Output: NOI: $45,000
60,000 − 3,000 vacancy − 12,000 expenses = $45,000 NOI.
Single-family rental
Input: Gross: $24,000, Vacancy: 0%, Expenses: $6,000
Output: NOI: $18,000
No vacancy loss when fully occupied.
Assumptions
- Operating expenses exclude capital improvements and mortgage interest.
- Estimate only. Not financial advice.
Common use cases
- Underwrite rental acquisitions
- Compare property cash flow before financing
- Prepare investor summaries
FAQ
What is NOI in real estate?
Net Operating Income is rental income minus vacancy and operating expenses, before mortgage payments.
Does NOI include mortgage payments?
No. Debt service is excluded from NOI and analyzed separately with DSCR.
How does NOI relate to cap rate?
Cap rate = NOI ÷ property value. Use both calculators together to screen deals.
Source notes
- NOI is a standard metric in commercial and residential investment analysis.
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Last reviewed: 2026-05-23