Calculate NOI
All figures in the same currency unit (e.g. thousands of rupiah). The initial values are an example you can compute right away.
Property NOI: effective rental revenue − operating expenses
Business NOI: revenue − COGS − operating expenses
Compare NOI of two properties / businesses
Solver: from target NOI to required figures
Understanding NOI: boundaries with other metrics
Property formula: NOI = (gross rent − vacancy/credit loss + other income) − operating expenses. Business formula: NOI = revenue − COGS − operating expenses. NOI margin = NOI ÷ effective revenue × 100%.
NOI vs net income: they are different metrics. NOI is computed before interest and income tax; net income is computed after all expenses including interest, tax, and depreciation. For net income after interest and tax, use the net income calculator.
NOI vs DSCR: NOI is not a debt ratio — NOI is an input to DSCR (debt service coverage ratio = annual NOI ÷ annual debt service). The NOI figure from this page can be used as input in the DSCR calculator.
Not deducted from NOI: interest/debt installments, income tax, depreciation and amortization, capital expenditure (capex), and non-operating items.
Frequently asked questions about NOI
What is NOI (net operating income)?
NOI is net operating income: total operating revenue minus operating expenses, computed BEFORE deducting interest, income tax, depreciation/amortization, and capital expenditure (capex). For property the formula is: effective rental revenue minus property operating expenses. For a general business: revenue minus COGS (cost of goods sold) minus operating expenses. Property example: gross rent 1,200 minus 5% vacancy (60) gives effective revenue 1,140; minus opex 400 gives NOI of 740 with a 64.91% margin.
What is the difference between NOI and net income?
NOI is computed before interest and income tax, while net income is computed after all expenses — including debt interest, income tax, depreciation, and non-operating items. They answer different questions: NOI measures the pure operating performance of a property or business line, while net income measures the bottom-line result received by the owner. To compute net income after interest and tax, use the net income calculator.
What is the relationship between NOI and DSCR?
NOI is the numerator in the DSCR (debt service coverage ratio): DSCR equals annual NOI divided by annual debt service. So the NOI figure you compute on this page can be used as input to assess whether a property can cover its debt installments. The DSCR calculator is available at /tools/dscr/.
Which expenses are deducted in NOI, and which must not be?
What is deducted: all operating expenses — for property e.g. property tax, insurance, maintenance, utilities, and management fees; for business e.g. COGS, operating payroll, rent, and utilities. What must NOT be deducted: interest or debt installments, income tax, depreciation and amortization, capital expenditure (capex), and non-operating revenue or expenses. Deducting interest or tax turns it into a different metric, no longer NOI.
How do you calculate rental property NOI?
Three steps: (1) gross rental revenue minus vacancy or arrears (vacancy/credit loss) equals effective revenue; (2) sum all operating expenses; (3) subtract operating expenses from effective revenue. Example: gross rent 1,200 minus 5% vacancy (60) gives effective revenue 1,140; opex 400 (property tax 150 + insurance 50 + maintenance 120 + management 80) gives NOI of 740. NOI margin = 740 divided by 1,140 times 100% = 64.91%. The property tab above computes the same steps from your own figures.
What is a good NOI margin?
There is no single universally valid figure: a reasonable margin varies across property types, locations, and business models. NOI margin is most useful for comparing two similar properties side by side, or for tracking one property over time — not as an absolute target to hit. The comparator tab above helps compare two properties or two businesses.
Is NOI the same as cash flow?
No. NOI has not yet been reduced by debt interest, income tax, and capital expenditure (capex) — three items that tangibly reduce cash in the owner's hands. NOI is a measure of operating performance, not of cash flow. All results on this page are educational estimates, not accounting, financial, or investment advice; for real decisions, consult a licensed accountant or adviser.