Real Estate NOI calculation
- Thread starter ar169
- Start date
Hi mate,
NOI stands for Net Operating Income. Thus, it excludes interest expense (financing) as well as taxes (only income taxes since property taxes are considered operating expenses). Amortization here is N/A since amortization is an accounting concept that only applies to intangibles. Depreciation is not considered in the calculation of NOI.
Simply recall that NOI = income if fully occupied - (vacancy loss and collection losses) - operating expenses (property taxes, insurance, expenses to maintain building in current state).
Hope that helps.
NOI stands for Net Operating Income. Thus, it excludes interest expense (financing) as well as taxes (only income taxes since property taxes are considered operating expenses). Amortization here is N/A since amortization is an accounting concept that only applies to intangibles. Depreciation is not considered in the calculation of NOI.
Simply recall that NOI = income if fully occupied - (vacancy loss and collection losses) - operating expenses (property taxes, insurance, expenses to maintain building in current state).
Hope that helps.
S2000magician
New member
- Jun 18, 2026
- 0
- 0
Bond premia and discounts – which are tangible – are amortized.
