Net operating income calculator
NOI is your property’s income after operating expenses, before debt service and income taxes. Enter your numbers below: no sign-up, no email required.
Your results
- Effective gross income / yr
- Operating expenses / yr
- Net operating income / yr
These figures are calculations from the numbers you entered, not an appraisal or a guarantee of performance.
Methodology
The calculation follows the standard appraisal definition. Gross potential income is your monthly rental income plus other income, annualized. Effective gross income applies your vacancy rate to rental income only, since other income is usually not vacancy dependent. NOI subtracts annual operating expenses from effective gross income:
EGI = (rent × 12) × (1 − vacancy) + (other × 12) NOI = EGI − (expenses × 12)
Operating expenses exclude debt service, depreciation, income taxes, and capital expenditures. The operating expense ratio shown is annual operating expenses divided by effective gross income.
Frequently asked questions
- What is NOI in real estate?
- Net operating income is the income a property generates after operating expenses, before debt service and income taxes. It is the standard measure of a property’s operating performance and the numerator in a cap rate calculation.
- What counts as operating expenses?
- Property taxes, insurance, repairs and maintenance, property management fees, utilities you pay, HOA dues, landscaping, and similar recurring costs of running the property. Mortgage payments, depreciation, and capital improvements are excluded.
- Is my mortgage included in NOI?
- No. NOI is calculated before debt service, so principal and interest payments are excluded. That is what makes NOI comparable across properties regardless of how they are financed.
- How does vacancy affect NOI?
- Vacancy reduces effective gross income. This calculator applies your vacancy rate to gross rental income before subtracting expenses, which mirrors how appraisers compute effective gross income.
- How can I raise my NOI?
- Raise income or cut expenses. Non-rent income is often the easiest lever: renting out vacant parking, a guest suite, or unused office space adds income without raising rent. The Parqay marketplace exists to fill exactly that kind of space with paying demand.
The fastest way to raise NOI is new income
Vacant parking, a guest suite, or an empty office can earn every month. Parqay fills them with paying demand and posts the revenue to your books.