Net operating income (NOI) is a commonly used formula to calculate the profitability of a real estate investment. Click to learn more about this important concept.

Understand net income: its definition, calculation method, and its critical role in business decisions and tax reporting.

Operating income is a company's profit after its expenses such as wages, depreciation, and cost of goods sold are deducted.

If you paid for a property with cash, calculating ROI is relatively simple. First, you calculate net operating income and then plug that number into the ROI formula. Here's an example.

How Do You Calculate Net Operating Income? Calculating NOI in real estate is a simple formula that takes into consideration all income and expenditures per property into one comprehensive calculation.

Reviewed by David Kindness The debt service coverage ratio (DSCR) is used in corporate finance to measure the amount of a ...