Real Estate & Mortgage
Net Operating Income (NOI)
Calculate a property's NOI from gross income and operating expenses.
Your inputs
Change any value to update the result instantly.
Net Operating Income
1,38,000
Effective gross income
2,28,000
Operating expenses
90,000
Operating expense ratio
39.4737%
What this calculator does
Estimates annual property income remaining after vacancy loss and ordinary operating expenses.
What your result means
The result is estimated annual net operating income before mortgage payments, depreciation, and income tax. A negative result means the entered effective income does not cover the entered operating expenses.
NOI by vacancy rate (%)
| Period | Input / invested | Calculated value |
|---|---|---|
| 0 | 2,40,000 | 1,50,000 |
| 5 | 2,40,000 | 1,38,000 |
| 10 | 2,40,000 | 1,26,000 |
| 15 | 2,40,000 | 1,14,000 |
| 20 | 2,40,000 | 1,02,000 |
Formula and working
NOI = Gross Operating Income − Operating Expenses (excludes debt service and depreciation)
- 1
Collect the inputs
Gross potential rent (annual) = 240,000; Vacancy & credit loss = 5 %; Operating expenses (annual) = 90,000
- 2
Apply the formula
NOI = Gross Operating Income − Operating Expenses (excludes debt service and depreciation)
- 3
Result
Net Operating Income = 138,000
Frequently asked questions
Symbols and assumptions
- GPR
- Annual gross potential rent
- V
- Vacancy and credit-loss rate
- OE
- Annual operating expenses
- NOI
- GPR × (1 − V) − OE
- • Vacancy and credit loss is applied to gross potential rent.
- • Operating expenses exclude debt service and depreciation.
Sources and review
Reviewed 2026-09-22 · Next review 2027-09-22
- • Actual underwriting may adjust rents, vacancy, management fees, replacement reserves, and other expenses.
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
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