RentFlowCalculators › Net Operating Income

Net Operating Income (NOI) Calculator

NOI is rental income minus operating expenses, before the mortgage. It drives cap rate and property value. Enter monthly rent and monthly operating expenses.

NOI = gross operating income − operating expenses (insurance, tax, management, maintenance, vacancy). It excludes the mortgage and income tax — those come after NOI.

What net operating income tells you

NOI is the income a property produces after operating costs but before financing and taxes. It is the numerator of the cap rate (NOI ÷ price) and the figure lenders and appraisers use to value income property. Raising rent or trimming controllable expenses both lift NOI — and with it, the property's value.

FAQ

What expenses are included in NOI?

Operating costs only: property tax, insurance, management, repairs, maintenance, utilities you pay, and a vacancy allowance. Mortgage payments and income tax are excluded.

Why does NOI exclude the mortgage?

So the property can be compared independently of how it's financed. Two investors with different loans see the same NOI but different cash flow.

How is NOI used to value property?

Divide NOI by the market cap rate to estimate value: value = NOI ÷ cap rate. A higher NOI at the same cap rate means a higher value.

See live NOI per property

RentFlow totals income and operating expenses per unit so your NOI and cap rate stay current. Free to start.

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