Net Operating Income (NOI) Calculator
Calculate the potential profitability of your investment property by determining its Net Operating Income (NOI). This calculator helps real estate investors evaluate property performance and make informed decisions.
Understanding Net Operating Income (NOI)
Net Operating Income is a crucial metric used in real estate investment analysis to determine a property's potential profitability. It represents the annual income generated by an investment property after deducting operating expenses but before considering debt service, income taxes, and capital expenditures.
How to Calculate NOI
The basic formula for calculating NOI is:
NOI = Gross Operating Income - Operating Expenses
Components of NOI
Gross Operating Income includes:
- Rental income from tenants
- Parking fees
- Laundry facilities income
- Vending machine revenue
- Other property-generated income
Operating Expenses include:
- Property taxes
- Insurance premiums
- Property management fees
- Maintenance and repairs
- Utilities (if paid by owner)
- Janitorial services
- Legal and accounting fees