NOI versus cash flow
NOI excludes mortgage payments and income tax. Cash flow after debt can be much lower, especially for highly leveraged properties.
Example
At 2,200 monthly rent, 5% vacancy and 700 monthly operating expenses, effective annual rent is 25,080 and annual expenses are 8,400. NOI is 16,680 before debt service.
How to use the result
Use NOI and cap rate to compare rental properties before financing. Then run a separate cash-flow estimate that includes mortgage payments and taxes.
Limitations
This calculator does not include debt service, closing costs, capital expenditures, local taxes, rent controls, insurance changes or one-time repairs.
Last reviewed: 2026-05-17