Calculator

Net operating income calculator

Calculate NOI from revenue and operating expenses.

The short answer

$24,000 gross rent with 5% vacancy and $8,000 of operating expenses gives $22,800 of effective gross income and $14,800 NOI.

Net operating income (NOI)

NOI = effective gross income − operating expenses

Effective gross income
$22,800.00
Net operating income
$14,800.00
Show the arithmetic
  • Vacancy and credit loss: 24000 × 5% = 1200
  • Effective gross income: 24000 − 1200 + 0 = 22800
  • NOI: 22800 − 8000 = 14800
Worked example

$24,000 gross rent with 5% vacancy and $8,000 of operating expenses gives $22,800 of effective gross income and $14,800 NOI.

Assumptions
  • Annual figures. Convert monthly amounts by multiplying by 12 first.
  • Operating expenses exclude mortgage principal and interest, capital improvements and depreciation — those sit below NOI.

Every figure is calculated from the values you entered. Nothing is fetched from market data, and this is general information rather than financial, legal or tax advice.

Formula

NOI = effective gross income − operating expenses

What you need

  • Annual gross rent
  • Other annual income (fees, parking, laundry)
  • Vacancy and credit loss
  • Annual operating expenses

Worked example

$24,000 gross rent with 5% vacancy and $8,000 of operating expenses gives $22,800 of effective gross income and $14,800 NOI.

Assumptions and units

  • Annual figures. Convert monthly amounts by multiplying by 12 first.
  • Operating expenses exclude mortgage principal and interest, capital improvements and depreciation — those sit below NOI.

Limitations

Every figure is calculated from the values you enter — nothing is estimated from market data. Real outcomes depend on your state, your lease terms and your property. This is general information, not financial, legal or tax advice.

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