Pricing & revenue
Net operating income (NOI)
NOI is property operating income minus operating expenses, including property taxes where applicable. It excludes financing costs, income tax, depreciation and capital improvements. It measures operating performance rather than the owner's final take-home cash.
Practical example
Illustrative example
A property produces $60,000 of operating income and incurs $25,000 of operating expenses, giving NOI of $35,000.
