Real Estate Calculator

Net Operating Income Calculator

Calculate net operating income from rental income and operating expenses.

Gross Rental Income $

Other Property Income $

Vacancy and Credit Loss $

Operating Expenses $

Calculator guide

How this calculator works

How to use this calculator

Enter the property’s gross rental income, other income, expected vacancy or credit loss, and operating expenses. The calculator subtracts vacancy loss and operating expenses to estimate net operating income.

Formula used

Net Operating Income = Gross Rental Income + Other Income − Vacancy Loss − Operating Expenses

Example calculation

If gross rental income is $50,000, other income is $3,000, vacancy loss is $2,500, and operating expenses are $18,000, then NOI is $32,500.

What the result means

NOI shows how much income a property generates before financing costs, taxes, depreciation, and major capital improvements. A higher NOI usually indicates stronger property operating performance.

Frequently asked questions

Does NOI include mortgage payments?

No. NOI usually excludes debt service because it measures property operations before financing decisions.

Should repairs be included as operating expenses?

Normal recurring repairs can be included. Major improvements are usually treated separately as capital expenditures.

Why is NOI important?

NOI is commonly used to evaluate rental property profitability and to calculate other metrics such as cap rate and DSCR.