Use our free Net Operating Income (NOI) Calculator to quickly determine the profitability of any real estate property. Essential for investors to evaluate potential returns, assess market value, and make informed investment decisions. Factor in gross rental income, other income, and all operating expenses.
Formula:
The Net Operating Income (NOI) formula is a key metric for real estate valuation, calculated as follows:
NOI = Gross Rental Income + Other Income - Operating Expenses
Where:
- Gross Rental Income: All income generated from rent.
- Other Income: Additional revenue like parking fees, laundry, vending machines.
- Operating Expenses: Costs associated with running the property (e.g., property taxes, insurance, utilities, maintenance, property management fees). Excludes mortgage payments, depreciation, and capital expenditures.