Net operating income estimates property income after vacancy and operating expenses.
Net Operating Income Calculator
Form
Results
NOI
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Table of Contents
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What is Net Operating Income?
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How to Use This Calculator
- Enter or select Area, Rental per area, Other income, Occupancy rate, Operating expenses.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
NOI = effective rental income+other income−operating expenses
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Variables Explained
| Input | What it means |
|---|---|
| Area | Surface size in square units. Covered area is different from a plot’s total land area. |
| Rental per area | Surface size in square units. Covered area is different from a plot’s total land area. |
| Other income | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Occupancy rate | The stated rate or percentage, entered using the scale and time period shown in the form. |
| Operating expenses | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
Potential rent 30,000 at 90% occupancy plus 1,000 other income minus 8,000 costs gives NOI=20,000.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- Mortgage principal and interest are financing costs, not property operating expenses in NOI.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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