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Rental Property NOI Calculator

Know exactly how much income your property generates before you sign anything. Enter your numbers and get annual NOI in real time.

Property Income and Expenses

$14,448
Annual Net Operating Income (NOI)
$1,204
Monthly NOI
$20,520
Effective Gross Income
30%
Expense Ratio
How to use this calculator
1

Enter monthly rent

Use your actual lease amount or the expected market rent for the unit.

2

Set vacancy rate

Most markets run 5-8%. Use your actual vacancy history or market data for the area.

3

Enter all operating costs

Include taxes, insurance, PM fee, and maintenance. Exclude mortgage payments entirely.

4

Read your NOI

Annual NOI updates instantly. Divide by your purchase price to get cap rate.

The NOI formula
Effective Gross Income = Monthly Rent × 12 × (1 - Vacancy%)
Operating Expenses = Taxes + Insurance + PM Fee + Maintenance + Other
NOI = Effective Gross Income - Operating Expenses

The PM fee is calculated as a percentage of collected rent, not potential rent, so vacancy already reduces it. Mortgage (principal and interest) is never included in NOI. That keeps NOI comparable across properties with different financing.

NOI benchmarks by property class
Property Class Typical NOI / Unit Cap Rate Target Expense Ratio Rating
Class A (new build, top MSA) $8,000 - $16,000 4% - 6% 35% - 45% Lower yield
Class B (suburban, 10-20yr old) $10,000 - $20,000 6% - 8% 30% - 40% Target zone
Class C (workforce, older stock) $8,000 - $18,000 8% - 12% 40% - 55% Higher ops cost
Class D (distressed market) Variable 10%+ 50% - 65% High risk
Common NOI mistakes investors make

Using gross rent instead of effective gross income

A 5% vacancy rate on $1,800/mo rent means $1,080 in lost income annually. Skipping that makes your NOI look $1,080 better than reality.

Leaving out maintenance reserves

A common rule of thumb is 1% of property value per year. On a $200,000 home, that is $2,000 annually. Ignoring it turns profitable properties into surprises.

Including mortgage payments in operating expenses

NOI is financing-agnostic. Including the mortgage understates NOI and makes cross-property comparison meaningless. Use NOI to compare deals, then subtract debt service to get cash flow.

Forgetting the PM leasing fee

Most PM companies charge 50-100% of first month's rent when placing a new tenant. On a 1-year lease with 8% turnover, that adds $1,260+ to your annual expenses.

Want the full analysis automatically?

DoorVault reads your PM statements, categorizes every transaction, and shows you live NOI, cash flow, and cap rate for every property in your portfolio. No spreadsheets.

Start Free See the demo
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Frequently asked questions
What is NOI in real estate?
Net Operating Income (NOI) is the annual income a property generates after subtracting all operating expenses but before deducting mortgage payments, income taxes, or depreciation. It is the clearest measure of a property's earning power, independent of how it is financed.
How do you calculate NOI for a rental property?
NOI = Effective Gross Income - Operating Expenses. Effective Gross Income = Gross Potential Rent x (1 - Vacancy Rate). Operating expenses include property taxes, insurance, property management fees, maintenance, utilities paid by owner, and any other recurring costs. Do not include mortgage payments.
What is a good NOI for a rental property?
A good NOI depends on your purchase price. Investors measure this as cap rate (NOI / Purchase Price). In secondary and Midwest markets, a cap rate of 7-10% is achievable. In coastal cities, 4-6% is more typical. Most passive investors target a minimum 6% cap rate before financing.
What is the difference between NOI and cash flow?
NOI ignores mortgage payments and reflects the property's earning power regardless of financing. Cash flow = NOI minus Annual Debt Service (principal and interest). Use NOI to compare and value properties. Use cash flow to measure what actually lands in your bank account each month.