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Net Operating Income (NOI) Calculator

Calculate your property's true operating profitability. Model gross potential income, vacancy allowances, and line-item operating expenses.

Net Operating Income (NOI) Breakdown

Calculates revenue minus pure operating expenses before debt service

Rental Income Sources

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Annual Operating Expenses

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Annual Net Operating Income
$22,568/year
Monthly NOI:$1,881/mo
Effective Gross Income:$35,400
Total Operating Expenses:-$12,832
Operating Expense Ratio:36.2%
Estimated Cap Rate:5.37%
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Net Operating Income Formula Breakdown

NOI = (Gross Potential Income − Vacancy Loss) − Total Operating Expenses

Excludes mortgage principal & interest, debt financing costs, and income taxes

Haven Underwriting Methodology

Standardized Financial Definitions

Haven standardizes expense categories and maintains transparent definitions to eliminate misleading marketing projections.

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Frequently Asked Questions

What is Net Operating Income (NOI)?

NOI is the total annual revenue generated by an investment property minus all necessary operating expenses. It measures the core operating profitability of the real estate before any mortgage debt service or tax depreciation.

What expenses are NOT included in NOI?

Mortgage payments (principal and interest), capital expenditures (major one-time improvements like new roofs), depreciation, income taxes, and amortization are excluded from operating expenses when calculating NOI.

What is an Operating Expense Ratio (OER)?

OER is the percentage of effective gross income consumed by operating expenses (Total Expenses ÷ Gross Income × 100). For residential single-family rentals, typical OER ranges from 35% to 45%. Multifamily properties typically run between 45% and 55%.

How does NOI relate to Cap Rate?

Cap Rate is directly derived from NOI: Cap Rate = (Annual NOI ÷ Current Market Value) × 100. A higher NOI on the same purchase price yields a higher cap rate.

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