Free calculator
NOI (Net Operating Income) Calculator
Enter gross potential income, a vacancy allowance, other income, and operating expenses to get effective gross income and net operating income.
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How to calculate NOI
NOI = (Gross potential income − Vacancy) + Other income − Operating expenses
Start with gross potential income, every site or unit rented at its market rate for a full year. Subtract a vacancy and credit-loss allowance to get effective gross income, add non-rent income (laundry, storage, utility reimbursements, cabin or RV rentals), then subtract operating expenses. Operating expenses do not include the mortgage, depreciation, or one-time capital projects.
Why it matters
NOI is the number cap rate, DSCR, debt sizing, and the sale price all rest on. Get it wrong and every downstream figure is wrong. The two lines investors most often miss: a management fee (count it even if you self-manage, your time has a market cost) and a capital reserve. Leaving them out is exactly how a seller's NOI comes in high.
Questions
Does NOI include the mortgage payment?
No. NOI is calculated before financing so it describes the property, not your loan. Debt service comes out after NOI to give you cash flow.
Is a capital reserve an operating expense?
For underwriting, yes, carry an annual reserve for replacements (roofs, roads, utility systems, park-owned homes) inside operating expenses. It is not the same as a one-time rehab budget at closing, which belongs in your sources and uses.
What counts as other income at an RV park?
Anything beyond site rent: cabin and park-model rentals, laundry, propane, firewood, store sales, storage, and utility reimbursements or RUBS. It is real income, but verify it is recurring before you capitalize it.
Related calculators
These calculators are quick estimators for screening. A full RVP Underwriter analysis normalizes the seller's numbers, verifies occupancy, researches your county's taxes and insurance, and prices three offer structures against your DSCR and cash-on-cash targets. Run a deal free.