NOI

Also called: Net Operating Income

Net Operating Income (NOI) is a property's income after operating expenses but before debt service, capital expenditures, and taxes. It's the core profitability metric used to value income-producing real estate.

Example

$1,710,000 in EGI less $1,060,000 in operating expenses gives an NOI of $650,000.

Formula

Effective Gross Income − Operating Expenses = NOI

Excel Formula:

• B6 = EGI
• B7 = Operating Expenses