Free calculator
NOI calculator
Estimate net operating income (NOI) for rental or commercial real estate on an annual basis: gross rental income, vacancy and credit loss as a percent of that gross, other operating income (parking, laundry, fees), and total operating expenses you roll up yourself. We show effective gross income (EGI) and NOI. Optionally add a purchase price or value to see implied cap rate (NOI ÷ price). Not debt service, not income tax, not appraisal or loan underwriting—illustration only.
When to use this calculator
Quick underwriting or portfolio checks before you build a full rent roll and P&L in a spreadsheet.
- Translate gross rent, a vacancy assumption, other income, and your opex total into EGI and NOI for a single property-year.
- See implied going-in cap rate when you already have a price or value and want NOI ÷ value in the same currency.
- Copy the Sheets/Excel patterns below into a model where you keep monthly detail on other tabs.
- Use the ROI or payback tools when the question is return on a one-time investment or undiscounted cash recovery—not NOI itself.
We follow a common U.S.-style annual pattern: start from gross rental income, reduce by vacancy and credit loss as a percent of that gross, add other operating income, then subtract total operating expenses.
Effective gross income (EGI)
EGI = gross rental income × (1 − vacancy % ÷ 100) + other operating income. Vacancy applies only to gross rent in this v1—not to other income.
Net operating income (NOI)
NOI = EGI − operating expenses (your rolled-up annual total). Negative NOI is allowed numerically when expenses exceed EGI.
Implied cap rate (optional)
When purchase price or value > 0, implied cap rate % = (NOI ÷ price) × 100. Same currency throughout; this is not a broker opinion of value.
What we do not model
Debt service, income tax, below-the-line capex reserves unless you fold them into opex, leasing commissions, TI allowances, tenant improvement accounting, DSCR, or multi-building allocations—use a full pro forma for those.
For return on one equity check on a buy and sell, see the ROI calculator; for loan payments, the mortgage and amortization tools. For gain % on a single round-trip, open the ROI calculator.
Google Sheets & Excel
English function names. Put gross rent in G2, vacancy % in V2 (as 5 for 5%, not 0.05), other income in O2, opex in X2, optional price in P2.
=G2*(1-V2/100)+O2Use V2 as a percent number (5 = 5%).
=E2-X2If EGI is in E2 and opex in X2.
=E3/P2If NOI is in E3 and price in P2; format the cell as % or multiply by 100 for a percent readout.
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Frequently asked questions
What does this NOI calculator do?
It estimates annual net operating income from gross rental income, a vacancy and credit loss %, other operating income, and total operating expenses, plus optional implied cap rate when you enter a price or value. It does not pull market data.
What is the exact formula on this page?
EGI = gross rent × (1 − vacancy %/100) + other income. NOI = EGI − operating expenses. With price > 0, implied cap rate % = (NOI ÷ price) × 100.
What should I include in operating expenses?
Typically recurring costs to run the property: property tax, insurance, repairs and maintenance, management, utilities you pay, marketing, legal for operations, etc. Debt service, owner income taxes, and major capex lines are usually excluded from NOI—some investors track reserves separately; here you choose what goes into your one opex total.
How is NOI different from cash flow?
NOI is before mortgage payments and income taxes on the property’s operations. Cash flow to an owner often subtracts debt service, reserves, and taxes—this tool stops at NOI unless you fold extra items into opex yourself (not recommended for debt).
Is cap rate the same as NOI?
No. Cap rate is usually NOI divided by price or value—a ratio, not a dollar NOI. We only show implied cap rate when you supply a positive price or value.
How do I match this in Google Sheets or Excel?
Use the spreadsheet block above: EGI with =G2*(1-V2/100)+O2 when V2 is typed as a percent number (5 for 5%), then NOI as EGI minus opex, and optional =NOI_cell/price formatted as %.
Is this an appraisal or a loan offer?
No. It is a free educational calculator with numbers you enter. Lenders and appraisers use their own guidelines, comps, and reconciliation—not this page.