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How to calculate Net operating income (NOI)

The Net operating income (NOI) formula, with plain worked examples you can check yourself.

Net operating income (NOI) = I − E

Worked examples

I = 6000 · E = 2400Net operating income (NOI) = 3,600
I = 7000 · E = 2450Net operating income (NOI) = 4,550
I = 9000 · E = 4500Net operating income (NOI) = 4,500

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Investing & Returns.

Related terms

DividendBondHedgingArbitrageLeverageAsset allocation

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