Net operating income calculator
Find property operating income before financing, depreciation and income tax.
Formula
Effective income = net rental income + other operating income; NOI = effective income − operating expenses.
Effective gross income ≈ (90,000)+(5,000) · NOI for the period ≈ (95,000)-(40,000)
How to use
- Enter rent after vacancy, concessions and bad debt.
- Add other operating income and expenses for the same period and currency.
- Read effective gross income and NOI.
Examples
- 90,000 rent + 5,000 other income − 40,000 expenses = 55,000 NOI.
Frequently asked questions
Which expenses belong here?
Include operating property costs such as maintenance, management, insurance and property tax.
Do loan payments reduce NOI?
No. Exclude loan principal, interest, depreciation, income tax and capital expenditure.
Can NOI be negative?
Yes, when operating expenses exceed effective income. It is not cash flow after debt service.
Sources
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