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NOI Calculator

NOI is the backbone of serious real estate analysis.

Net operating income sits underneath cap rate, DSCR, and valuation conversations. Dealarc helps investors understand how rent, vacancy, and expenses combine into the number that shapes the entire deal.

Income minus operations

NOI starts with effective gross income and subtracts operating expenses before debt service and capital structure.

Drives multiple metrics

Cap rate, valuation, and debt coverage all depend on the quality of the NOI estimate.

Easy to overstate

Skipping reserves, underestimating maintenance, or assuming low vacancy can make NOI look stronger than reality.

How to use an NOI calculator well

A good NOI calculator should force clarity around the operating line items that actually determine performance. That means taxes, insurance, repairs, management, and vacancy all need to be realistic.

NOI formula

NOI = effective gross income - operating expenses

It does not include mortgage payments, income taxes, depreciation, or owner-specific financing choices.

Why investors care

  • It supports property valuation
  • It feeds cap rate calculations
  • It drives DSCR
  • It helps compare assets on an unlevered basis
The best underwriting work starts with realistic NOI. Once that foundation is credible, investors can layer on financing and hold assumptions with more confidence.

NOI calculator FAQ

What is NOI?

NOI stands for net operating income. It is property income after operating expenses but before debt service.

Does NOI include mortgage payments?

No. NOI is calculated before financing, which is why it is often used in valuation and cap rate analysis.

Why is NOI important?

Because it influences cap rate, DSCR, and overall asset quality. Weak NOI assumptions can distort the entire model.

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