Learn how to calculate Net Operating Income with Benzinga's ultimate guide. Understand NOI basics and boost your real estate investing knowledge today!

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.

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

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

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.

To calculate net income, start with total revenue, subtract the cost of goods sold to find gross profit, and then deduct operating expenses, interest, and taxes.