Net operating income (NOI)
Also called NOI, operating income. Last reviewed Oct 8, 2026 by Jeremy Werden
Net operating income (NOI) is a rental property's yearly revenue minus its operating expenses, before mortgage payments and income taxes. In a BNBCalc analysis it appears as Operating Income, and property tax isn't subtracted from it, because BNBCalc keeps property tax with the mortgage under Mortgage & Taxes.
NOI = annual revenue − operating expenses
How it's used
NOI is the starting point for two common measures:
- Cap rate = NOI ÷ purchase price, which compares properties without regard to financing.
- DSCR, the debt service coverage ratio lenders use, = NOI ÷ yearly debt payments. In BNBCalc it's operating income ÷ yearly Mortgage & Taxes, shown on US Buy analyses.
BNBCalc's Operating Income and textbook NOI
A textbook NOI usually subtracts property tax along with the other running costs. BNBCalc's Operating Income row subtracts every operating expense, property insurance included, but leaves property tax for the Mortgage & Taxes row below it, so for the same property BNBCalc's figure comes out a little higher.
For example, a home with $60,000 of revenue and $27,780 of operating expenses has an Operating Income of $32,220 in BNBCalc, while a textbook NOI that also subtracts its $3,960 of property tax would be $28,260. For more on why NOI matters to a short-term rental business, see What Is NOI and Why It's Important to an Airbnb Business.