Metrics
NOI (Net Operating Income)
Gross annual rent minus all operating expenses, before debt service and income tax.
How it's calculated
NOI = Gross Rent − (Property Tax + Insurance + Maintenance + Vacancy + Management + Other Op Ex)Example
$60,000 gross rent − ($6,000 tax + $2,400 insurance + $3,600 maintenance + $3,000 vacancy + $5,400 management) = $39,600 NOI.
Why NOI (Net Operating Income) matters
NOI is the numerator in cap rate, DSCR, and most commercial valuation formulas. It also excludes debt service intentionally — so two investors with different financing on the same property have the same NOI.
Run the math on a real deal
TrueCap has a free calculator for this. Paste an address or enter numbers manually — get NOI (Net Operating Income) plus all the supporting metrics in 60 seconds.
Try the free NOI (Net Operating Income) calculatorRelated terms
Cap Rate
Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
DSCR (Debt Service Coverage Ratio)
Net Operating Income ÷ mortgage payment. Measures whether the property's income comfortably covers d…
Monthly Cash Flow
Rent minus operating expenses minus mortgage payment. The cash that lands in your account each month…