Work out net operating income instantly with clear inputs, formula shown and shareable results.
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.
Effective gross income
EGI = gross rent x (1 - vacancy) + other income
Net operating income
NOI = EGI - operating expenses
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.
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.
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.