NOI Builder
Build your Net Operating Income step by step. Add income sources and operating expenses to calculate NOI.
Gross Income
Operating Expenses
What is NOI?
Net Operating Income (NOI) is the total income a property generates after operating expenses but before debt service or income taxes. It's the foundation of property valuation.
What's Included in NOI:
- Income: Rent, parking, laundry, CAM reimbursements, late fees
- Expenses: Property taxes, insurance, utilities, maintenance, management, repairs
What's NOT Included:
- Mortgage payments (principal & interest)
- Capital expenditures (CapEx)
- Depreciation
- Income taxes
Related Calculators
Frequently Asked Questions
Is Debt Service included in NOI?
NO. This is the #1 mistake. NOI is strictly income minus operating expenses. Mortgage payments come AFTER NOI to calculate Cash Flow.
Should I include Reserves in NOI?
Lenders typically calculate a "Net Cash Flow" which is NOI minus Reserves ($250/unit etc). But standard NOI usually excludes capital reserves.
Is Property Management an operating expense?
Yes. Even if you self-manage, you should deduct a market-rate management fee (3-5%) to calculate the true NOI and value.
How do I calculate "Effective Gross Income"?
Potential Gross Income (Market Rent) minus Vacancy and Credit Loss = Effective Gross Income (EGI).
Does NOI include capital expenditures (CapEx)?
Generally no. Recurring maintenance is an operating expense, but major replacements (new roof, HVAC) are "below the line" CapEx.