Net Operating Income (NOI) Calculator
Calculate Net Operating Income for a rental property by adjusting gross rent for vacancy and subtracting operating expenses.
How to Use the NOI Calculator
- Enter annual gross rental income.
- Enter vacancy rate percentage.
- Enter total annual operating expenses.
- Click Calculate to see effective income and NOI.
使用场景
- •Calculating property value using cap rate method.
- •Comparing operating performance across rental properties.
- •Tracking NOI improvement from operational changes.
- •Preparing property financial statements for lenders.
公式
Effective income = gross rent × (1 − vacancy%). NOI = effective income − operating expenses.
常见问题
What is Net Operating Income?
NOI is the annual income generated by a property after deducting operating expenses but before mortgage payments and income taxes.
What expenses are excluded from NOI?
Mortgage payments, depreciation, capital expenditures, and income taxes are excluded. NOI focuses on operating performance only.
How is NOI used in valuation?
NOI divided by the cap rate gives the property value. Increasing NOI directly increases property value under income approach valuation.