NOI Calculator — Net Operating Income
Calculate Net Operating Income for any rental property — the foundation of cap rate, DSCR, and property valuation.
Why NOI Is the Foundation of Real Estate Analysis
Net Operating Income is the single most important financial metric for investment real estate. Every other metric — cap rate, DSCR, property value (income approach), and cash-on-cash return — flows from NOI. Lenders use NOI to determine if your rental income covers debt service (DSCR). Appraisers use NOI to determine property value (income capitalization). Investors use NOI to compare deals across different financing structures.
The key insight about NOI is that it excludes financing. Two investors can own identical properties with identical NOIs but have very different cash flows based on their loan terms. This financing independence makes NOI a universal comparison tool. Whether you paid all cash, put 20% down at 6.5%, or financed at 7.5% — the property NOI is the same. It's the benchmark you use to evaluate the deal itself, separate from your financing strategy.