Net Operating Income Calculator

✖Total Property Revenue refers to the overall income generated from a property, including rent, fees, and other sources of revenue before deducting expenses.ⓘ Total Property Revenue [TPR]			+10% -10%
✖Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.ⓘ Operating Expenses [OE]			+10% -10%

✖Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.ⓘ Net Operating Income [NOI]

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Formula

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Net Operating Income

Formula

`"NOI" = "TPR"-"OE"`

Example

`"59500"="67500"-"8000"`

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Net Operating Income Solution

STEP 0: Pre-Calculation Summary

Formula Used

Net Operating Income = Total Property Revenue-Operating Expenses
NOI = TPR-OE
This formula uses 3 Variables

Variables Used

Net Operating Income - Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.
Total Property Revenue - Total Property Revenue refers to the overall income generated from a property, including rent, fees, and other sources of revenue before deducting expenses.
Operating Expenses - Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.

STEP 1: Convert Input(s) to Base Unit

Total Property Revenue: 67500 --> No Conversion Required
Operating Expenses: 8000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

NOI = TPR-OE --> 67500-8000

Evaluating ... ...

NOI = 59500

STEP 3: Convert Result to Output's Unit

59500 --> No Conversion Required

FINAL ANSWER

59500 <-- Net Operating Income

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 10+ more calculators!

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Net Operating Income Formula

Net Operating Income = Total Property Revenue-Operating Expenses
NOI = TPR-OE

What is Net Operating Income ?

Net Operating Income (NOI) is a crucial financial metric used in real estate investment analysis. It represents the total revenue generated from a property minus all operating expenses required to operate and maintain the property, excluding mortgage payments, income taxes, and other financing costs. Operating expenses typically include property taxes, insurance, utilities, maintenance, property management fees, and any other costs directly related to the day-to-day operation of the property. NOI provides investors with a clear picture of the property's profitability before factoring in financing and tax considerations, making it a valuable tool for evaluating the potential income-generating capability of an investment property. Investors use NOI to calculate other key performance indicators such as the capitalization rate (cap rate) and cash-on-cash return, helping them make informed decisions about real estate investments based on their financial goals and risk tolerance.

How to Calculate Net Operating Income?

Net Operating Income calculator uses Net Operating Income = Total Property Revenue-Operating Expenses to calculate the Net Operating Income, The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes. Net Operating Income is denoted by NOI symbol.

How to calculate Net Operating Income using this online calculator? To use this online calculator for Net Operating Income, enter Total Property Revenue (TPR) & Operating Expenses (OE) and hit the calculate button. Here is how the Net Operating Income calculation can be explained with given input values -> 59500 = 67500-8000.

FAQ

What is Net Operating Income?

The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes and is represented as NOI = TPR-OE or Net Operating Income = Total Property Revenue-Operating Expenses. Total Property Revenue refers to the overall income generated from a property, including rent, fees, and other sources of revenue before deducting expenses & Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.

How to calculate Net Operating Income?

The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes is calculated using Net Operating Income = Total Property Revenue-Operating Expenses. To calculate Net Operating Income, you need Total Property Revenue (TPR) & Operating Expenses (OE). With our tool, you need to enter the respective value for Total Property Revenue & Operating Expenses and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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