Net Operating Income (NOI) Calculator
Calculate NOI for rental properties. Include all income sources, deduct vacancy, and subtract every operating expense to find your true net operating income.
NOI: The Universal Rental Property Metric
Net Operating Income is the closest thing real estate has to a universal standard for measuring property performance. Unlike cash flow (which changes with every financing scenario) or yield (which depends on which expenses you include), NOI is defined consistently: all rental and ancillary income, minus vacancy, minus all operating expenses, before any debt service. This financing-neutral metric allows appraisers, lenders, and investors to compare properties on equal footing.
In practice, NOI drives three critical calculations. Cap rate = NOI / property value, so every dollar of NOI improvement directly increases what a property is worth. DSCR = NOI / annual debt service, so NOI determines loan qualification for investment property financing. And implied value = NOI / market cap rate, which is how commercial appraisers value income properties. Improving your NOI through rent increases, expense reduction, or adding ancillary income has a multiplied impact on both your returns and your property value.