Net Operating Income Calculator
Calculate the net operating income (NOI) of a rental or commercial property from its income and operating expenses.
What net operating income measures
Net operating income (NOI) is a core measure of a rental or commercial property’s profitability before financing and taxes. It shows how much income the property generates purely from its operations, which is why it’s the standard figure used to calculate capitalization rates and compare properties.
How this calculator works
The calculator adds your gross rental income and any other income (like parking or laundry fees) to get gross potential income, subtracts vacancy and credit losses to get effective gross income, then subtracts total operating expenses (maintenance, property management, insurance, property taxes, utilities, etc. — but not mortgage payments or depreciation) to arrive at NOI.
- Operating Expense Ratio shows what share of income goes to running costs.
- NOI Margin shows what share of income remains as operating profit.
Mortgage payments, capital expenditures, and income taxes are intentionally excluded from NOI, since it measures the property’s operating performance independent of how it’s financed. This tool is for general planning and educational purposes.