What is NOI?

[ashot]

I keep seeing this term in property investment discussions. What is NOI, and how is it calculated?

 

[robert]

Net Operating Income (NOI) is a real estate valuation metric that shows the net income of a real estate asset after all the operating costs have been deducted but before accounting for the debt service and income tax.

 

[robertwilliam]

NOI (Net Operating Income) is an important financial indicator of the profitability of an income-producing asset, particularly in real estate. It is derived by deducting operating expenses (such as repairs, taxes, and utilities) from revenue, but without including interest and taxes. The higher the NOI, the more efficient the operations.

 

[alexmetro]

NOI stands for Net Operating Income, it's basically what a property earns after you subtract operating expenses but before taxes and debt payments, super important number when you're evaluating whether a real estate deal is actually worth it.

 

[Oscar]

NOI (Net Operating Income) is a real estate metric calculating income generated from a property after operating expenses, excluding taxes, interest, and depreciation, used to assess profitability and investment performance.