Finance category

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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

Monthly rent

Other monthly income

laundry, parking, storage

Vacancy

Operating expenses (monthly)

Property tax

Insurance

Property management

Maintenance reserve

Capex reserve

Landlord-paid utilities

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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Net Operating Income (NOI) Calculator is built to give a quick, browser-based estimate for net operating income (noi). 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the net operating income (noi) result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this net operating income (noi) estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.