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
Annual Operating Expenses
Net Operating Income Formula Breakdown
Excludes mortgage principal & interest, debt financing costs, and income taxes
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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