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Noseberry Digitals
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NOI Calculator

Compute net operating income, effective gross income, and your expense ratio. Enter rents, vacancy, and operating costs, we'll show NOI plus a market-context rating instantly.

Net Operating Income

$75,800

→ Average

Gross rental income (annual)
USD / year
Other income (parking, laundry, fees)
USD / year
Vacancy & credit loss
%

Industry average for stabilized multifamily is 5%–8%.

Operating expenses (annual)
USD / year

Taxes, insurance, maintenance, management. Exclude mortgage and CapEx.

Effective gross income
$117,800
Expense ratio
35.65%
Operating expenses
$42,000
Vacancy applied
5.00%
How this is calculated

EGI = (Gross rent + Other income) × (1 − vacancy%)

NOI = EGI − Operating expenses

NOI is pre-debt and pre-tax. It feeds straight into cap-rate and DSCR math, so accuracy here compounds across every other metric.

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We'll benchmark your expense ratio against comparable assets and flag the line items most likely to be over- or under-budgeted. Free 30-minute call.

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FAQ

Common questions

What is NOI and why does it matter?

Net Operating Income is the cash a property generates after operating costs but before debt service and taxes. It's the universal benchmark lenders, brokers, and appraisers use to value income property, most cap-rate and DSCR math starts here.

What's a healthy expense ratio?

For stabilized U.S. multifamily, 35%–45% of effective gross income is typical. Class-A in tier-1 markets can run lower (25%–35%); older Class-C value-add deals often run higher (45%–55%). Anything above 55% usually signals deferred maintenance or weak management.

Should I include capital expenditures?

No, true NOI excludes CapEx (roof replacement, HVAC, big-ticket renovations). Lenders and appraisers underwrite a separate replacement reserve (usually $250–$300/unit/year). Mixing CapEx into operating expenses understates NOI and confuses the cap-rate comparison.

How do I improve NOI?

Two levers: raise effective gross income (push rents to market, reduce vacancy, add ancillary income like parking or storage) and trim controllable expenses (renegotiate insurance, shop property management, audit the tax assessment). A 5% income lift plus a 5% expense cut compounds.
Need help interpreting your numbers?

Ready to stress-test your NOI with our underwriting team?

Calculators give you the formula. We help you turn it into an underwriting model lenders and LPs trust. Free 30-minute consult, no pitch deck, no commitment.