Net Operating Income

Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate properties. It can be expressed in terms of monthly NOI or annual NOI. Net operating income for real estate takes the amount of annual profit after taking into account all income collected (revenue from rent, parking, and storage) and covering all of its expenses.

Net Operating Income Calculator

Net Operating Income Formula

Net operating income = gross income – operating expenses

Investment Property Worksheet

While net operating income is an important metric to evaluate when vetting investment properties, there are more factors to consider. Download our investment worksheet to quickly calculate these key investment property metrics:

  • Total Cash Flow
  • Gross Rent Multiplier
  • CAP Rate
  • Monthly Net Operating Income
  • Annual Net Operating Income
  • Yearly Appreciation Rate