Net Operating Income Calculator: Maximize Your Real Estate Profits
Use our Net Operating Income (NOI) Calculator to find property profit fast: enter rental and other income, subtract operating costs, and the tool returns NOI instantly. Because 90 % of commercial real-estate investors review NOI before buying (Deloitte 2023 Commercial-Real-Estate Outlook, https://www2.deloitte.com), you stay aligned with industry practice.
Net Operating Income Calculator
Net Operating Income:
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How to use the tool
Rental Income – type your gross rent. Example inputs: 7,840 or 13,975.
Other Income – add items like parking or pet fees. Example inputs: 960 or 2,180.
Total Operating Expenses – enter all recurring costs. Example inputs: 3,420 or 6,750.
Typical multifamily expense ratio: 40–50 % of gross income (FHFA Multifamily Underwriting Standards 2022, https://www.fhfa.gov).
Lenders target ≥ 1.25 Debt-Service-Coverage Ratio using NOI (Fannie Mae Multifamily Guide 2023, https://mfguide.fanniemae.com).
Average U.S. apartment NOI per unit: 8,613 USD yearly (NMHC 2022 Apartment Cost of Capital, https://www.nmhc.org).
NOI excludes capital expenditures under GAAP (FASB ASC 360, https://asc.fasb.org).
FAQ
What is Net Operating Income?
NOI is a property’s revenue after operating expenses but before debt service, capital costs, and taxes (Investopedia, 2023).
How does NOI differ from cash flow?
Cash flow subtracts financing and capital items; NOI stops at day-to-day expenses, so lenders use it to size loans (Fannie Mae Guide 2023, https://mfguide.fanniemae.com).
Which expenses belong in NOI?
Include maintenance, insurance, property taxes, utilities, and management fees; exclude principal, interest, depreciation, and improvements (IRS Pub. 527 2023, https://irs.gov).
Can NOI be negative?
Yes—when expenses exceed income, signaling under-performance or distress (Deloitte CRE Outlook 2023, https://www2.deloitte.com).
Why do lenders care about NOI?
They divide NOI by debt service to assess repayment capacity; most require a DSCR of at least 1.25 (Fannie Mae Guide 2023).
How often should I recalculate NOI?
Quarterly reviews flag trends early, while annual audits satisfy lender reporting (CCIM Institute Analysis Handbook 2022, https://www.ccim.com).
Is NOI calculated before or after taxes?
Before income taxes; operating taxes such as property tax are inside the expense line (IRS Pub. 527 2023).
How can you improve NOI?
Raise rents to market level, add ancillary income streams, and cut controllable expenses like utilities (IREM Income/Expense Analysis 2022, https://www.irem.org). “Small efficiency gains compound quickly in NOI,” notes IREM’s 2022 report.
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
