NOI Calculator
How to use this NOI calculator
Find your target income in 3 steps
Set Your Target
Enter the cap rate % you want.
Enter Property Value
Type the property price or value.
See Required NOI
See the yearly income the deal must make.
How this NOI calculator works
See the math (optional)
This tool flips the normal cap rate formula. Instead of finding cap rate from income and value, it finds the income (NOI) you need from cap rate and value.
Reverse Formula
Required NOI
Value
×Example: $1,000,000 × (8.0 / 100) = $80,000
What each number means
Target Cap Rate (%)
The yearly return % you want on the property.
Property Value ($)
The price or market value of the property.
NOI ($)
The yearly income after running costs that you must earn to hit that return.
Real-World Examples
See it in action
Scenario A: Conservative
Typical for high-end properties in prime locations.
Scenario B: Balanced
A common target for residential investment properties.
Scenario C: High Yield
Often older buildings or riskier markets requiring higher return.
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Frequently Asked Questions
How to calculate NOI from cap rate?
The formula is: NOI = (Cap Rate % / 100) × Property Value. For example, if you want an 8% return on a $1,000,000 property, calculate 0.08 × 1,000,000 to get $80,000 in required NOI.
What does the calculated NOI represent?
The result represents the Net Operating Income (NOI) required annually. This is your total rental income minus operating expenses (taxes, insurance, maintenance), but BEFORE paying any mortgage.
Why is this calculation useful?
It helps you work backward from your investment goals. If you know the market cap rate is 6% and a building costs $2M, you can quickly calculate that you need to generate $120,000 in NOI to make the deal work.
Does this include mortgage payments?
No. NOI is strictly income minus operating expenses. Debt service (mortgage) is paid out of NOI, but it is not subtracted to calculate NOI itself.