Net Operating Income Calculator

Formula

The formula to calculate the Net Operating Income (NOI) is:

\[ NOI = \text{Gross Income} - \text{Operating Expenses} \]

Where:

$ NOI $ is the net operating income.
$ \text{Gross Income} $ is the total income generated by the property.
$ \text{Operating Expenses} $ are the costs associated with operating the property.

What is NOI?

Net Operating Income (NOI) is a measure of the profitability of a property, calculated by subtracting the operating expenses from the gross income. It is a key metric used in real estate to assess the performance of an investment property.

Example Calculation

Consider an example where:

Gross Income: $100,000
Operating Expenses: $30,000

Using the formula to calculate the Net Operating Income:

\[ NOI = 100,000 - 30,000 = 70,000 \]

This means that the net operating income for this example is $70,000.