What expenses are excluded from NOI?

Mortgage payments (debt service), depreciation, income taxes, capital expenditures, and personal expenses. NOI reflects operating performance independent of financing structure.

What is a typical vacancy rate to use?

Residential: 5-8% of gross scheduled income. Commercial office: 10-15%. Retail strip center: 8-12%. Lenders typically require 5% minimum vacancy allowance regardless of current occupancy.

What operating expenses should I include?

Property taxes, insurance, utilities (if landlord-paid), management fees (8-12% of gross), maintenance and repairs, landscaping/snow removal, professional fees, and a capital reserves allowance (5-10% of gross).

Net Operating Income (NOI) Calculator

Calculate NOI for income-producing real estate: gross rental income minus vacancy allowance minus operating expenses. Excludes debt service, depreciation, and income taxes.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate NOI for income-producing real estate: gross rental income minus vacancy allowance minus operating expenses. Excludes debt service, depreciation, and income taxes. Use the noi calculator result to inform your calculation.

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Frequently Asked Questions

What expenses are excluded from NOI?

What is a typical vacancy rate to use?

What operating expenses should I include?