NOI Calculator
Build net operating income from gross potential income, vacancy, other income, operating expenses, and reserves.
Last updated:
How it works
Follow the underwriting path lenders use: input the deal, apply constraints, then read the result.
Enter gross potential income
Start with annual scheduled rent or gross potential income.
NOI Formula
Net operating income is the starting point for debt yield, DSCR, cap rate, and loan sizing. This calculator subtracts the reserves you enter, so its result is cash flow after those reserves. Enter zero reserves to calculate operating NOI before that adjustment. See what belongs in NOI and actual versus underwritten income.
Read the calculation methodology and limitations.
Operating NOI = Gross Potential Income - Vacancy Loss + Other Income - Operating Expenses
Cash Flow After Reserves = Operating NOI - Replacement Reserves$1,500,000 GPI - $75,000 vacancy + $50,000 other income - $475,000 expenses = $1,000,000 operating NOI. Subtracting $25,000 reserves leaves $975,000 cash flow after reserves.
See This Calculator in Action
Explore institutional underwriting examples. Load any scenario into the live calculator with one click to customize rates, amortization, and property valuation.
Stabilized multifamily NOI
Operating NOI = Gross Potential Income - Vacancy Loss + Other Income - Operating ExpensesThis NOI can then feed debt yield, DSCR, cap rate, and max loan amount calculations.
Underwriting Metric Comparison & Lender Sizing Standards
Compare debt yield against DSCR and LTV constraints, and review typical sizing assumptions across lender types.
Where NOI Flows
3 Core Sizing TestsNOI / LoanSets income-based loan cap
NOI / Debt ServiceTests payment coverage
NOI / ValueSupports valuation
| Metric | Formula | Why NOI Matters |
|---|---|---|
| Debt Yield | NOI / Loan | Sets income-based loan cap |
| DSCR | NOI / Debt Service | Tests payment coverage |
| Cap Rate | NOI / Value | Supports valuation |
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Apartment property | $1.5M GPI, 5% vacancy, $500k expenses/reserves | $925k to $1.0M NOI range depending on other income |
| Retail center | Base rent plus reimbursements minus recoverable and non-recoverable expenses | NOI before debt service |
| Loan sizing input | $900,000 NOI / 10% debt yield | $9,000,000 max loan by debt yield |
Conversion reference
| Item | Included in NOI? | Note |
|---|---|---|
| Rental income | Yes | After vacancy and credit loss |
| Operating expenses | Yes | Subtracted before NOI |
| Debt service | No | Used after NOI to calculate DSCR |
| Depreciation | No | Accounting item, not operating cash flow |
Quick facts
- NOI is the numerator for debt yield, DSCR, and cap rate.
- Debt service is not subtracted when calculating NOI.
- Replacement reserves may be included in lender underwriting NOI.
- Small NOI changes can materially change maximum loan proceeds.
Editorial Team
Commercial Real Estate Finance Reviewers
- Calculations reviewed against standard CRE lending formulas for DSCR, LTV, cap rate, and debt yield
- Methodology cross-checked against lender-style loan sizing using NOI, value, loan constant, DSCR, LTV, and debt yield
Our editorial team builds and reviews commercial real estate finance calculators around the way lenders actually size debt: property income, collateral value, annual debt service, and lender risk thresholds. Results are educational screening estimates, not loan quotes, tax advice, legal advice, or a commitment to lend.
Methodology: formulas are calculated from borrower-entered inputs using standard CRE underwriting relationships for NOI, debt yield, DSCR, LTV, cap rate, loan constant, and maximum loan proceeds.
Reviewer note: pages are reviewed for formula accuracy and updated when lender benchmarks or site methodology changes.
Disclaimer: results are educational estimates only and are not financial, legal, tax, valuation, or lending advice.
Frequently asked questions
Operating NOI is property income after vacancy, credit loss and operating expenses, including property taxes, but before debt service, income taxes and capital expenditures. Lender net cash flow may deduct replacement reserves separately.
No. Mortgage payment is excluded from NOI and used later to calculate DSCR.
NOI drives debt yield, DSCR, cap rate, and maximum commercial mortgage proceeds.