NOI Calculator guide
Net operating income is the foundation for cap-rate, valuation and DSCR analysis. This calculator helps owners organize property income and recurring operating expenses before financing and income taxes.
Income included in NOI
Include collected rent and recurring property-level income such as approved utility reimbursements, parking, laundry or other fees. Reduce potential income by a realistic vacancy and credit-loss allowance.
Expenses included in NOI
Common operating expenses include property taxes, insurance, repairs, maintenance, management, utilities paid by the owner, landscaping, pest control, administrative costs and recurring reserves. The exact treatment of reserves varies by analysis, so stay consistent when comparing properties.
Items normally excluded
Mortgage principal and interest, depreciation, owner income taxes and acquisition costs are generally excluded from NOI. Major capital projects may be analyzed separately, although ignoring predictable capital needs can overstate performance.