Net Operating Income Solution

STEP 0: Pre-Calculation Summary
Formula Used
Net Operating Income = Total Property Revenue-Operating Expenses
NOI = TPR-OE
This formula uses 3 Variables
Variables Used
Net Operating Income - Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes.
Total Property Revenue - Total Property Revenue refers to the overall income generated from a property, including rent, fees, and other sources of revenue before deducting expenses.
Operating Expenses - Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.
STEP 1: Convert Input(s) to Base Unit
Total Property Revenue: 67500 --> No Conversion Required
Operating Expenses: 8000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
NOI = TPR-OE --> 67500-8000
Evaluating ... ...
NOI = 59500
STEP 3: Convert Result to Output's Unit
59500 --> No Conversion Required
FINAL ANSWER
59500 <-- Net Operating Income
(Calculation completed in 00.020 seconds)

Credits

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Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
Keerthika Bathula has created this Calculator and 100+ more calculators!
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Verified by Aashna
IGNOU (IGNOU), India
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Net Operating Income Formula

​LaTeX ​Go
Net Operating Income = Total Property Revenue-Operating Expenses
NOI = TPR-OE

What is Net Operating Income ?

Net Operating Income (NOI) is a crucial financial metric used in real estate investment analysis. It represents the total revenue generated from a property minus all operating expenses required to operate and maintain the property, excluding mortgage payments, income taxes, and other financing costs. Operating expenses typically include property taxes, insurance, utilities, maintenance, property management fees, and any other costs directly related to the day-to-day operation of the property. NOI provides investors with a clear picture of the property's profitability before factoring in financing and tax considerations, making it a valuable tool for evaluating the potential income-generating capability of an investment property. Investors use NOI to calculate other key performance indicators such as the capitalization rate (cap rate) and cash-on-cash return, helping them make informed decisions about real estate investments based on their financial goals and risk tolerance.

How to Calculate Net Operating Income?

Net Operating Income calculator uses Net Operating Income = Total Property Revenue-Operating Expenses to calculate the Net Operating Income, The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes. Net Operating Income is denoted by NOI symbol.

How to calculate Net Operating Income using this online calculator? To use this online calculator for Net Operating Income, enter Total Property Revenue (TPR) & Operating Expenses (OE) and hit the calculate button. Here is how the Net Operating Income calculation can be explained with given input values -> 59500 = 67500-8000.

FAQ

What is Net Operating Income?
The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes and is represented as NOI = TPR-OE or Net Operating Income = Total Property Revenue-Operating Expenses. Total Property Revenue refers to the overall income generated from a property, including rent, fees, and other sources of revenue before deducting expenses & Operating Expenses are the ongoing costs incurred to maintain and manage a property or business, including utilities, maintenance, insurance, and property management fees.
How to calculate Net Operating Income?
The Net Operating Income is the total revenue generated from a property minus operating expenses but excluding debt service and income taxes is calculated using Net Operating Income = Total Property Revenue-Operating Expenses. To calculate Net Operating Income, you need Total Property Revenue (TPR) & Operating Expenses (OE). With our tool, you need to enter the respective value for Total Property Revenue & Operating Expenses and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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