Stabilized NOI Calculator

Stabilized NOI is what a property will earn once it is fully leased at market rent with normal vacancy, credit loss, operating expenses, and capital reserves. Appraisers, lenders, and buyers use stabilized NOI — not trailing 12 — to value commercial real estate. This calculator walks from gross potential rent down to NOI with every stabilization adjustment in between.

Gross potential rent (annual)

Loss to lease

Stabilized vacancy

Credit / bad debt loss

Other income (annual)

Stabilized operating expenses

Replacement reserves

/unit

Number of units

Stabilized NOI

$370,496

Effective gross income

$680,496

Effective rent

$698,400

Total opex + reserves

$310,000

Stabilized expense ratio

45.6%

Reserves contribution

$10,000

How the math works

Stabilized NOI strips out concessions, lease-up losses, and one-time items and projects what the property will earn once it is fully leased at market rent with normal vacancy and expenses. Lenders and appraisers use this number — not trailing actuals — to size loans and value the asset.

NOI = GPR × (1 − loss to lease) × (1 − vacancy − credit loss) + other income − opex − reserves. Include replacement reserves — most lenders require $250-$350 per unit per year.

How to Use

Enter gross potential rent (every unit at market rent, 100% occupied).
Enter loss to lease — the gap between market rent and in-place rent.
Enter stabilized vacancy, credit loss, and other income.
Enter operating expenses and per-unit reserve line.
Read effective gross income and stabilized NOI.

Frequently Asked Questions

Stabilized vs actual NOI?

Actual is what the trailing P&L shows. Stabilized strips out concessions, unusual vacancy, and lease-up losses and projects market-rent economics. Lenders use stabilized for LTV and debt yield on value-add deals.

Reserve amount?

Fannie/Freddie multifamily is typically $250–$300/unit/year. Office and retail are $0.25–$0.35/SF. Hotels are 4% of revenue. Always include — lenders will add it if you don't.