Net Operating Income

Net Operating Income (NOI) is a measurement used by property owners and investors to determine how much profit a real estate property generates from its operations. It is calculated by subtracting all the operating expenses—such as maintenance, property management, taxes, and insurance—from the property’s total income from rent and other sources. Importantly, NOI does not account for mortgage payments or taxes on income. It provides a clear picture of the property's profitability from its core operations, helping investors assess its income-generating potential and compare different properties.