Build a real income-and-expense statement for your rental, line by line instead of lump sums. Add rent, parking, pet rent and more, itemize every operating expense (with monthly or annual entry per line), and get your net operating income, expense ratio, and even cap rate instantly. Free, no email required.
Net operating income is the cash a rental property produces from operations in a year: all income the property actually collects, minus everything it costs to run it, before any mortgage. The formula: NOI = Effective Gross Income − Operating Expenses, where Effective Gross Income (EGI) is your potential gross income (rent plus parking, laundry, pet rent, and other fees) minus vacancy and credit loss. NOI is the single number lenders, appraisers, and buyers use to judge a property's performance, which is why getting the line items right matters more than any other rental math you'll do.
Anything recurring that keeps the property running and rented: property taxes, insurance, property management (often 8% to 12% of collected income), repairs and maintenance, owner-paid utilities, landscaping and snow removal, pest control, trash, legal and accounting fees, and advertising. HOA dues count too if you pay them. The calculator above has a preset button for each so you don't forget one. Most rentals land at 35% to 55% of effective gross income in total operating expenses, and the tool flags you if you're outside that range.
Four things never belong in NOI: mortgage payments (NOI measures the property, not your financing; excluding debt keeps two differently financed deals comparable), capital expenditures (a new roof is an investment in the asset, not a recurring operating cost; budget reserves separately), depreciation (a paper tax deduction, not cash out the door), and income taxes (those depend on your bracket and entity, not the building). Sneaking any of these in deflates NOI and makes a property look worse than it is; leaving out real operating costs inflates it. Both mistakes cost money at the negotiating table.
NOI is what the property earns; cash flow is what *you* pocket after the mortgage and capital reserves. A property can have a strong NOI and negative cash flow if it's heavily leveraged. Use NOI to compare and value properties, and cash flow to judge whether a specific deal works with your loan. Our Rental Property ROI Calculator handles the full financed picture.
Income property is priced as Value = NOI ÷ Cap Rate. At a 6% market cap rate, every extra $1,000 of annual NOI adds roughly $16,700 of value, which is why raising rent $50, adding a $35 pet-rent line, or trimming an expense moves your appraisal far more than it moves your monthly statement. Enter your property value in the calculator's optional fields to see your cap rate instantly, or explore pricing scenarios with our Cap Rate Calculator.
Yes: 100% free, no account, no email, unlimited use. It's part of Advanced Collection Bureau's free toolkit for landlords and property managers. Your line items even save in your browser so you can come back to them.
No. NOI is intentionally financing-blind: it measures what the property earns regardless of how it's purchased. Subtract debt service after NOI to get cash flow.
5% (about 18 days a year) is a common planning number for stable markets. Use your actual history if you have it, or your market's vacancy rate, and remember the input also covers credit loss (rent billed but never collected).
Yes, even if you self-manage. Appraisers and buyers will deduct a market management fee anyway, so including 8% to 10% of collected income gives you the property's true, transferable NOI.
Most rentals run 35% to 55% of effective gross income. Below 35%, double-check you haven't missed an expense; above 55%, look for costs to trim or rents to raise. Older buildings and owner-paid-utility properties naturally run higher.
Yes. If operating expenses exceed collected income, the property loses money before the mortgage even enters the picture. The calculator shows a negative NOI in red so the problem is impossible to miss.
Yes, both. "Copy link to this scenario" gives you a URL that reopens the calculator with your exact income and expense line items, so you can send it to a partner or revisit it later on any device. "Download as spreadsheet (CSV)" exports a clean, itemized NOI statement (income lines, vacancy, EGI, every expense, total operating expenses, NOI, and expense ratio) ready to open in Excel or Google Sheets and hand to a lender, broker, or appraiser.
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