NOI Calculator
Calculate Net Operating Income for any multifamily property. Enter your revenue and expenses to see NOI, margins, and per-unit performance.
Revenue
Total rent if 100% occupied at market rates
Typical multifamily vacancy: 3-7%
Laundry, parking, pet fees, late fees, etc.
Operating Expenses
Property Details
Enter unit count to calculate NOI per unit
Annual Results
Enter gross potential rent to see results
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See a Portfolio DemoHow to Calculate NOI for Multifamily Properties
What is Net Operating Income (NOI)?
Net Operating Income (NOI) is the most important profitability metric in commercial real estate. It measures a property's income after subtracting all operating expenses, but before debt service, capital expenditures, and income taxes. For multifamily asset managers, NOI is the foundation for valuation, debt sizing, and performance benchmarking.
The NOI Formula
NOI = Effective Gross Income - Total Operating Expenses
Where Effective Gross Income = Gross Potential Rent + Other Income - Vacancy & Credit Loss.
NOI Margin Benchmarks for Multifamily
NOI margins vary by property class, market, and age. Here are general benchmarks for stabilized multifamily properties:
| NOI Margin | Assessment |
|---|---|
| Below 40% | Below average — high expense ratio may indicate deferred maintenance, management inefficiency, or below-market rents |
| 40% – 55% | Typical range for stabilized Class B/C multifamily |
| 55% – 70% | Strong performance, common in Class A or well-optimized assets |
| Above 70% | Excellent — typically newer builds or properties with minimal owner-paid utilities |
What NOI Does Not Include
NOI excludes debt service (mortgage payments), capital expenditures, depreciation, amortization, and income taxes. These are accounted for separately when calculating cash flow, cap rates, and investor returns.
Why NOI Matters for Portfolio Management
For asset managers overseeing 10+ properties, tracking NOI across the portfolio reveals which assets are outperforming, where expense ratios are trending the wrong direction, and which properties need operational attention. Manual spreadsheet tracking breaks down at scale — purpose-built BI platforms automate NOI tracking with daily-updated financials from your PMS.
Want to go deeper? Read our comprehensive NOI guide for the full formula breakdown, NOI margin benchmarks, NOI per unit analysis, and how NOI drives property valuation.