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Calculation Machine

Net Operating Income (NOI) Calculator

Find a rental property's net operating income.

Reviewed by the Calculation Machine team · How we check our maths

Your values

ⓘ Live results

Results
Effective gross income
$52,452.00
Operating expenses
$14,000.00
Net operating income
$38,452.00
NOI margin
73.31%

Quick answer

Net operating income is a property's income after operating expenses and vacancy, but before mortgage payments, capital expenditures, and taxes on the owner's return.

The formula

NOI = effective gross income - operating expenses

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Gross monthly rent4500 $
  • Other monthly income (parking, laundry)150 $
  • Vacancy rate6 %
  • Annual operating expenses14000 $

Result

  • Effective gross income$52,452.00
  • Operating expenses$14,000.00
  • Net operating income$38,452.00
  • NOI margin73.31%

How to use the Net Operating Income (NOI) Calculator

  1. 1Enter gross monthly rent and any other property income.
  2. 2Apply a realistic vacancy rate.
  3. 3Subtract all annual operating expenses (taxes, insurance, maintenance, management) — but not debt service.

Frequently asked questions

Does NOI include mortgage payments?

No — NOI is calculated before debt service, so it can be compared across properties regardless of financing.

What expenses are excluded from NOI?

Mortgage principal and interest, capital expenditures, and income taxes are excluded from operating expenses.

About this calculator