Follow the default numbers.
With purchase price of $350,000, monthly rent of $2,400, the model gives net operating income: $17,803.
The formula is noi = effective income − operating expenses. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Build income before subtracting expenses
Scheduled rent starts with rent per unit multiplied by unit count and twelve months. Other annual income is added before the vacancy allowance. Effective income is what remains after that allowance. The management and maintenance percentages apply to collected income, not asking rent. Enter parking, laundry and other revenue only when it is supported by the property’s records.
What belongs in NOI
The operating builder includes taxes, insurance, management, maintenance, HOA, owner-paid utilities and other recurring costs. Principal and interest are financing costs. Depreciation is an accounting deduction. Capital replacement reserves are shown after NOI. This separation lets the same NOI support cap-rate and commercial DSCR comparisons without changing the definition from one calculator to the next.
Reconcile the inputs to real records
Use a trailing twelve-month statement when possible, then adjust for specific known changes such as a new insurance quote or post-sale tax assessment. Distinguish ordinary repairs from a one-time renovation budget. An expense paid by a tenant should not be subtracted from landlord income unless the corresponding reimbursement is also included. Test both stabilized and current occupancy if the property is still leasing up.
Read the bridge to cash flow
The result shows effective income, operating costs and NOI before deducting annual debt service and capital reserves. Negative NOI indicates the operating model loses money before financing. Positive NOI does not guarantee positive cash flow. Follow the prefilled DSCR or cash-on-cash link to check the effect of your actual financing while preserving the same property assumptions.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.