Noi Calculator with Cap Rate

.noi-calc-container {
font-family: -apple-system, BlinkMacSystemFont, “Segoe UI”, Roboto, Helvetica, Arial, sans-serif;
max-width: 800px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e1e4e8;
border-radius: 12px;
background-color: #ffffff;
box-shadow: 0 4px 15px rgba(0,0,0,0.05);
color: #333;
}
.noi-calc-header {
text-align: center;
margin-bottom: 30px;
}
.noi-calc-grid {
display: grid;
grid-template-columns: 1fr 1fr;
gap: 20px;
}
@media (max-width: 600px) {
.noi-calc-grid { grid-template-columns: 1fr; }
}
.noi-calc-group {
margin-bottom: 15px;
}
.noi-calc-group label {
display: block;
font-weight: 600;
margin-bottom: 8px;
font-size: 14px;
color: #444;
}
.noi-calc-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
box-sizing: border-box;
font-size: 16px;
}
.noi-calc-btn {
grid-column: 1 / -1;
background-color: #0056b3;
color: white;
padding: 15px;
border: none;
border-radius: 6px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background 0.3s;
margin-top: 10px;
}
.noi-calc-btn:hover {
background-color: #004494;
}
.noi-calc-results {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border-radius: 8px;
border-left: 5px solid #0056b3;
}
.noi-calc-result-item {
display: flex;
justify-content: space-between;
margin-bottom: 10px;
font-size: 16px;
}
.noi-calc-result-item span:last-child {
font-weight: bold;
color: #0056b3;
}
.noi-article {
margin-top: 40px;
line-height: 1.6;
color: #444;
}
.noi-article h2 { color: #222; margin-top: 25px; }
.noi-article p { margin-bottom: 15px; }

Calculate property profitability and market valuation quickly.

Understanding Net Operating Income (NOI)

Net Operating Income is a fundamental metric used in commercial real estate to determine the profitability of an income-producing property. It represents all revenue from the property, minus all reasonably necessary operating expenses. Crucially, NOI is calculated before taxes and interest payments on loans are deducted.

The NOI Formula

To calculate NOI, you follow these steps:

1. Gross Potential Income: The total rent you would collect if the property was 100% occupied.
2. Effective Gross Income (EGI): Gross Potential Income minus Vacancy and Credit Losses, plus miscellaneous income.
3. NOI: Effective Gross Income minus Operating Expenses (Property Management, Maintenance, Utilities, Property Taxes, Insurance).

What is Cap Rate?

The Capitalization Rate (Cap Rate) is the ratio of Net Operating Income to property asset value. It is the most common way to compare different real estate investment opportunities. A higher cap rate generally implies a higher risk but a higher potential return.

Cap Rate Formula: (Net Operating Income / Current Market Value) × 100

Example Calculation

Imagine a multi-family building with the following annual stats:

• Gross Rent: $200,000
• Vacancy (5%): $10,000
• Operating Expenses: $70,000

Your NOI would be $120,000 ($200,000 – $10,000 – $70,000). If the building is priced at $2,000,000, the Cap Rate is 6% ($120,000 / $2,000,000).

Why Investors Use This Calculator

By using this tool, investors can determine if an asking price is realistic based on the local market’s “Target Cap Rate.” If the market cap rate is 7% but the property is trading at 5%, the property might be overpriced—or it may have significant “value-add” potential through rent increases.

function calculateNOI() {
var grossRent = parseFloat(document.getElementById(‘grossRentalIncome’).value) || 0;
var vacancyRate = parseFloat(document.getElementById(‘vacancyRate’).value) || 0;
var otherIncome = parseFloat(document.getElementById(‘otherIncome’).value) || 0;
var expenses = parseFloat(document.getElementById(‘operatingExpenses’).value) || 0;
var marketValue = parseFloat(document.getElementById(‘currentMarketValue’).value) || 0;
var targetCap = parseFloat(document.getElementById(‘targetCapRate’).value) || 0;
// Calculation Logic
var vacancyLoss = grossRent * (vacancyRate / 100);
var effectiveGrossIncome = grossRent – vacancyLoss + otherIncome;
var noi = effectiveGrossIncome – expenses;
// Cap Rate Logic
var currentCap = 0;
if (marketValue > 0) {
currentCap = (noi / marketValue) * 100;
}
// Valuation Logic
var targetValue = 0;
if (targetCap > 0) {
targetValue = noi / (targetCap / 100);
}
// Display Results
document.getElementById(‘resultsArea’).style.display = ‘block’;
document.getElementById(‘resEGI’).innerText = ‘$’ + effectiveGrossIncome.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById(‘resNOI’).innerText = ‘$’ + noi.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById(‘resCurrentCap’).innerText = currentCap.toFixed(2) + ‘%’;
document.getElementById(‘resTargetValue’).innerText = ‘$’ + targetValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Smooth scroll to results
document.getElementById(‘resultsArea’).scrollIntoView({ behavior: ‘smooth’, block: ‘nearest’ });
}