Calculate net operating income — the figure every commercial real estate debt metric is built on.
What is NOI?
Net operating income is a property’s income after operating expenses, before debt service and taxes. It’s the number lenders underwrite — and the input to DSCR, debt yield, and cap rate.
EGI = (Gross income + Other) × (1 − Vacancy)
NOI = EGI − Operating expenses
NOI = EGI − Operating expenses
The operating expense ratio (expenses ÷ EGI) is a quick sanity check on how efficiently the property runs.
Why it matters for financing
Every debt metric flows from NOI. A small change in expenses or vacancy moves your supportable loan more than you’d expect — which is why lenders scrutinize the income statement before anything else.
See what this NOI supports — Loan Sizing →For
CRE owners, developers, investors, and brokers underwriting income-producing commercial real estate.
Not for
Residential rentals, consumer loans, unsecured business loans, equity raises, or securities offerings.