# Net Operating Income Calculator (NOI)

URL: https://speedycalculator.com/calculators/finance/net-operating-income/
Last updated: 2026-10-25

> The NOI calculator works out the net operating income of a rental property – potential rent plus other income, minus vacancy and operating expenses (tax, insurance, management, maintenance, repairs) – the figure used for cap rates and loan approval.

## Inputs

- Annual rental income (at full occupancy)
- Other income (parking, laundry)
- Occupancy rate (%)
- Property tax
- Property management fees
- Insurance
- Maintenance
- Repairs
- Other operating expenses (utilities, admin)

## Results

- Potential gross income
- Vacancy loss
- Effective gross income
- Total operating expenses
- Net operating income (NOI)
- Operating expense ratio

## Formula

```
Potential gross income = area × rent per area + other income (or total rent)
Effective gross income = PGI × occupancy
NOI = EGI − operating expenses (excluding mortgage, depreciation and capex)
```

## Explanation

NOI measures a property's profitability before financing and taxes. Lenders use it for the debt service coverage ratio, and buyers divide it by the cap rate to estimate value.

### How to use the Net Operating Income Calculator

- **Annual rental income (at full occupancy)**
- **Other income (parking, laundry)**
- **Occupancy rate**
- **Property tax**
- **Property management fees**
- **Insurance**
- **Maintenance**
- **Repairs**
- **Other operating expenses (utilities, admin)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the rental income, other income, occupancy and each operating expense for the year.

### Tips

- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.

### Common mistakes to avoid

- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.

### Inputs explained

FieldWhat to enterAnnual rental income (at full occupancy)Amount in your currencyOther income (parking, laundry)Amount in your currencyOccupancy rateIn %Property taxAmount in your currencyProperty management feesAmount in your currencyInsuranceAmount in your currencyMaintenanceAmount in your currencyRepairsAmount in your currencyOther operating expenses (utilities, admin)Amount in your currency

### What each result means

- **Potential gross income** = [Annual rental income (at full occupancy)] + [Other income (parking, laundry)]
- **Vacancy loss** = [Potential gross income]×(1 - [Occupancy rate]÷100)
- **Effective gross income** = [Potential gross income] - [Vacancy loss]
- **Total operating expenses** = [Property tax] + [Property management fees] + [Insurance] + [Maintenance] + [Repairs] + [Other operating expenses (utilities, admin)]
- **Net operating income (NOI)** = [Effective gross income] - [Total operating expenses]
- **Operating expense ratio** = [Total operating expenses]÷[Effective gross income]×100

### Example values

How the main result changes when **Annual rental income** changes and everything else stays at the example values above:

Annual rental income (at full occupancy)Net operating income (NOI)60,00018,52090,00046,420120,00074,320150,000102,220180,000130,120240,000185,920

## Worked example

Inputs — Annual rental income (at full occupancy): $120,000; Other income (parking, laundry): $4,000; Occupancy rate: 93 %; Property tax: $14,000; Property management fees: $9,000; Insurance: $5,000; Maintenance: $6,000; Repairs: $3,000; Other operating expenses (utilities, admin): $4,000.

Results — Potential gross income = $124,000.00; Vacancy loss = $8,680.00; Effective gross income = $115,320.00; Total operating expenses = $41,000.00; **Net operating income (NOI) = $74,320.00**; Operating expense ratio = 35.55 %.

## FAQ

**What is NOI?**
Income from a property after operating expenses but before debt service and taxes.

**Is the mortgage an operating expense?**
No – NOI is calculated before mortgage payments.

**What is a typical operating expense ratio?**
Around 35–50% of effective gross income for apartments.

**What formula does the Net Operating Income Calculator use?**
Potential gross income = area × rent per area + other income (or total rent).