NOI Calculator (Net Operating Income)
Net operating income is the foundation number of income-property analysis: cap rate, DSCR and value estimates all build on it. This calculator walks through every line — from gross scheduled rent to the final NOI.
How NOI is built
Effective gross income = scheduled rent + other income (fees, parking, laundry), reduced by vacancy and credit loss. Operating expenses: property tax, insurance, management fee, maintenance and repairs, utilities you pay, and anything else except mortgage payments and capital improvements.
The two most common mistakes: subtracting the mortgage payment (that is debt service, not an operating expense) and forgetting the vacancy allowance. A 5% vacancy haircut is a common baseline for US residential.
Frequently asked questions
Does NOI include the mortgage payment?
Never. Debt service is a financing cost, not an operating cost — NOI must stay independent of financing to feed cap rate and DSCR.
Does NOI include capital expenditures (new roof, HVAC)?
No. Large irregular capex is excluded from NOI, but a monthly reserve allowance is often modeled separately when underwriting.
Related tools
- NOI definition: standard real-estate underwriting practice (US).
Last updated: 2026-09-08