CalculateRealEstateROI

ROI Metrics

Net Operating Income (NOI)

Gross income from a property minus all operating expenses, before debt service and taxes.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

The property's earning power on its own — what's left after running it but before paying the bank.

Formula

NOI = Gross Income − Operating Expenses

Examples

  • $24k rent − $9.6k expenses (40%) = $14.4k NOI.

Common mistakes

  • Including mortgage payments in expenses.
  • Excluding vacancy or capex reserves.

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