FREE OWNER CALCULATOR
What does this property actually net?
Enter annual income, a vacancy allowance, and operating expenses by category. Get net operating income, the operating expense ratio, and, if you add debt service and a value, cash flow after debt, DSCR, and the implied cap rate.
Income, vacancy, and operating expenses
Use trailing-twelve-month actuals or a stabilized budget. Every figure is editable.
Income
Operating expenses
Below the line (optional)
Effective gross income of $584,250 after 5% vacancy, less $137,000 in operating expenses (an operating expense ratio of 23.4%).
What the calculation includes
Base rent + expense recoveries + other income = potential gross income. Less vacancy and credit loss = effective gross income.
Taxes, insurance, repairs and maintenance, owner-paid utilities, management, administrative and professional fees, and other recurring operating costs.
Mortgage payments, income taxes, depreciation, capital improvements, tenant improvements, and leasing commissions. Debt service and reserves are shown separately below the line.
GOOD TO KNOW
Questions owners ask about NOI.
What is net operating income?
NOI is a property's income after operating expenses but before debt service, income taxes, depreciation, and capital expenditures. It's the number lenders, appraisers, and buyers use to compare properties regardless of how each one is financed.
Should management fees be included even if I self-manage?
For your own cash flow, no. For a valuation or a sale, most appraisers and buyers deduct a market management fee (often 3–5% of effective gross income for small commercial) whether or not you pay one, because the next owner may. Run it both ways.
Are expense recoveries income?
Yes. CAM, tax, and insurance reimbursements billed to tenants are income; the underlying costs are operating expenses. Both sides appear so the NOI reflects what the property actually nets.
What's the difference between NOI and cash flow?
Cash flow subtracts debt service and reserves from NOI. NOI describes the asset; cash flow describes your position as its financed owner. The calculator shows both so they're never confused.