🏢 Real Estate
NOI Calculator
Calculate Net Operating Income, cap rate, and debt service coverage ratio for any rental or commercial property.
🏠 Property & Financing
💰 Gross Rental Income
🧾 Annual Operating Expenses
📊 Net Operating Income Results
Net Operating Income (NOI)
before debt service & taxes
Cap Rate
NOI ÷ Property Value
Debt Service Coverage Ratio
NOI ÷ Annual Mortgage
Annual Cash Flow
📋 NOI Calculation Breakdown
Gross Potential Rent (annual)
+ Other Income (annual)
− Vacancy & Credit Loss
= Effective Gross Income (EGI)
− Property Tax
− Insurance
− Repairs & Maintenance
− Property Management
− Utilities
− Other Operating Costs
= Total Operating Expenses
= NET OPERATING INCOME
🏦 Annual Debt Service
📈 Property Value from NOI
at the cap rate above
📌 5 NOI Tips for Real Estate Investors
- ✓ NOI excludes financing — that is the point. A property with strong NOI but high debt service is a different investment than one with the same NOI and no debt. Always look at NOI first to compare deals on a level playing field.
- ✓ Vacancy is the biggest NOI wildcard. 5% is optimistic for residential, 8-10% is realistic, 10-15% is conservative for commercial. Underwriting with a higher vacancy number gives you a margin of safety when a unit goes empty.
- ✓ Cap rate reveals market value faster than comps. NOI ÷ cap rate = implied property value. If the market trades similar properties at 7% cap and your NOI is $35K, the value is $500K. If the asking price is higher, you are paying for future growth.
- ✓ DSCR below 1.20 is a red flag for lenders. Most banks want to see NOI cover the mortgage by 20-50%. A 1.0 DSCR means the property barely covers the debt — no room for repairs, vacancy spikes, or rate increases on adjustable loans.
- ✓ Reserves are not operating expenses. CapEx (roof, HVAC, appliances) is excluded from NOI under standard accounting, but lenders and partners will still want a reserve line. Build a 5-10% CapEx reserve into your cash flow model even though it does not appear in NOI.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or investment advice. NOI definitions vary slightly between residential and commercial properties, and lenders may compute operating expenses differently for underwriting purposes. Always perform thorough due diligence and consult licensed professionals before investing.
Related Real Estate Investment Tools
NOI is the foundation — pair it with cap rate, cash-on-cash return, and yield metrics to see the full picture of a rental property's performance.
- Cap Rate Calculator: Turn your NOI into a comparable yield metric — divide by property value to see how this deal stacks up against the market.
- Cash-on-Cash Return Calculator: Move from NOI to your actual cash-on-cash return by subtracting debt service and dividing by your down payment.
- Rental Yield Calculator: Compare gross and net yield across multiple properties in your portfolio — the screen that finds the right deals before you run full NOI.
- Rental Property Calculator: Project monthly cash flow, NOI, and 10-year returns for any rental property — the full deal analysis beyond just NOI.
- Mortgage Calculator: Calculate the exact monthly principal and interest that goes into debt service — the input DSCR uses to test if NOI covers the loan.
- Down Payment Calculator: Figure out how much cash you need to put down — the input that drives both your loan size and your cash-on-cash return.
- ROI Calculator: Calculate total return on investment including appreciation, equity build-up, and tax benefits — the full-picture metric beyond annual NOI.
- Payback Period Calculator: See how many years of NOI it takes to recover the purchase price — the time horizon that cap rate only hints at.
📚 Resources for Real Estate Investors
The 5 Tips above cover the math, but the best investors pair NOI analysis with underwriting playbooks, market research, and deal-finding systems.
🏢 Commercial Real Estate Analysis
Underwriting frameworks used by brokers and lenders — DCF, cap rate benchmarking, and NOI stress-testing.
🏠 Rental Property Investing
Beginner-friendly guides to evaluating deals past the NOI headline — cash flow, appreciation, and the 1% rule.
📊 Cap Rate Calculator
Turn your NOI into a comparable yield metric — divide by property value to see how this deal stacks up.
💰 Cash-on-Cash Return Calculator
Move from NOI to actual cash-on-cash return by subtracting debt service and dividing by your down payment.