Net Operating Income Calculator

Work out net operating income instantly with clear inputs, formula shown and shareable results.

About Net Operating Income Calculator

Net operating income is effective gross income less operating expenses, and it is the standard measure of a property's earning power because it excludes financing, income tax, depreciation and capital expenditure. That deliberate exclusion is what makes NOI comparable between properties with different owners and different debt.

Formulas

Effective gross income

EGI = gross rent x (1 - vacancy) + other income

Net operating income

NOI = EGI - operating expenses

Worked example

With the default values below, Net Operating Income Calculator returns Net operating income of $1,035,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Gross rental incomeminimum 0: 1,500,000
Other incomeminimum 0: 60,000
Vacancy and credit lossaccepts 0–60 %: 7 %
Operating expensesminimum 0: 420,000

Results

Net operating income: $1,035,000.00
Effective gross income: $1,455,000.00
Vacancy and credit loss: $105,000.00
Operating margin: 71.13% %

Step by step

1Values used
2Effective gross income
3Net operating income
4Net operating income= 1,035,000.00
5Effective gross income= 1,455,000.00
6Vacancy and credit loss= 105,000.00
7Operating margin= 71.13 %

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Net Operating Income figure worked out?

EGI = gross rent x (1 - vacancy) + other income. Net operating income is effective gross income less operating expenses, and it is the standard measure of a property's earning power because it excludes financing, income tax, depreciation and capital expenditure.

Should a capital reserve be deducted?

Institutional practice deducts a replacement reserve to give a more sustainable NOI. Brokers often omit it, which is one reason quoted cap rates need scrutiny.

What values do I need to enter?

This calculator takes 4 inputs: Gross rental income, Other income, Vacancy and credit loss, Operating expenses. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.