Net Operating Income (NOI) Calculator
Detailed NOI
Calculate NOI with itemized income and expenses
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Quick NOI
Quick NOI calculation using expense ratio
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Formula
NOI = Effective Gross Income − Operating Expenses | Effective Gross Income = Gross Rent − Vacancy Loss | Quick NOI = Gross Rent × (1 − Vacancy%) × (1 − Expense Ratio)
Frequently Asked Questions
What is NOI?
Net Operating Income (NOI) is the annual income a property generates after deducting operating expenses but BEFORE debt service (mortgage payments). NOI = Effective Gross Income − Operating Expenses. It's the key metric for evaluating commercial and investment property performance.
What expenses are included in NOI?
NOI includes: property taxes, insurance, repairs/maintenance, property management fees, utilities (if landlord-paid), landscaping, snow removal, legal/accounting, and reserves. NOI does NOT include mortgage payments, depreciation, income taxes, or capital expenditures.
What is the 50% rule?
The 50% rule is a quick estimate stating that operating expenses (excluding mortgage) will be about 50% of gross rental income. So if a property generates $40,000/year in rent, estimate NOI at $20,000. This is a rough guideline; actual expenses vary.
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