Finance category
Mortgage, loan, investing, tax, and money calculators.
Net Operating Income (NOI) Calculator
Build the NOI for a rental property: effective gross income (rent − vacancy + other income) minus operating expenses, before debt service. NOI feeds cap rate, DSCR, and almost every other metric.
Income
laundry, parking, storage
Operating expenses (monthly)
Annual NOI
$23,364
EGI − operating expenses
Monthly NOI
$1,947
before debt service
Effective gross income
$36,996
after vacancy
Operating expense ratio
36.8%
opex / EGI
How NOI works
NOI = effective gross income minus operating expenses, before debt service and capex/depreciation. It's the standard income figure for cap rate, DSCR, and most commercial valuations.
Some investors exclude capex from operating expenses and treat it separately as a reserve below the line. Others include it for a more conservative NOI. Be consistent — and clear about which version you're using when comparing properties.
How to Use
- Enter monthly rent, any other recurring income (laundry, parking), and a vacancy assumption.
- Enter monthly operating expenses line by line: tax, insurance, management, maintenance reserve, capex reserve, landlord-paid utilities.
- Read the annual NOI — this drives cap rate, DSCR, and most valuation work.
- Watch the operating expense ratio — well-managed residential rentals run 35–50% OER; over 60% suggests problems.
Frequently Asked Questions
What's the difference between NOI and cash flow?
NOI is income before debt service. Cash flow is NOI minus mortgage P&I. NOI is what valuers use because it's not affected by how much leverage you use; cash flow is what hits your bank account.
Should capex be in operating expenses?
Investors disagree. Conservative analysts include a capex reserve so big-ticket replacements (roof, HVAC, water heater) don't distort cash flow. Some include only routine maintenance and treat capex separately. Be explicit about which approach you're using.
Does NOI include depreciation?
No. Depreciation is a non-cash tax deduction, not an operating expense. NOI tracks actual operating performance; depreciation belongs in the tax return analysis.
How is NOI different from EGI?
EGI (effective gross income) is rent minus vacancy plus other income — what comes in. NOI is EGI minus operating expenses — what's left to service debt and reward equity.
Related Calculators
Cap Rate Calculator
Use NOI to compute cap rate vs property value.
DSCR Calculator
Use NOI to compute the debt service coverage ratio.
Operating Expense Ratio Calculator
Compute OER on its own to benchmark efficiency.
Cash Flow per Door Calculator
Subtract debt service from NOI per unit.
Rental Cash Flow Calculator
Build full cash flow from NOI minus debt service.
Gross Scheduled Rent Calculator
Start at the top of the income statement before vacancy.
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