Formula for NOI

rellison · May 31, 2009, 8:22pm

I forgot how to calculate NOI in case they don’t give it to you on the test. Is it Sales - selling costs - fixed costs - variable costs?

chowder · May 31, 2009, 8:48pm

it will be given… nowhere in LOS it says to calculate it

bpdulog · May 31, 2009, 9:29pm

True, but it was required for L1, so are they assuming we know it?? NOI = Rent - operating expenses as far as I’m concerned

chowder · May 31, 2009, 9:45pm

yes- if gross income is 100 and expenses are say 5 then your net income is 95

Cubemonkey · May 31, 2009, 9:48pm

chowder Wrote: ------------------------------------------------------- > yes- if gross income is 100 and expenses are say 5 > then your net income is 95 Assuming ‘expenses’ includes the tax payment.

Nep-hi · May 31, 2009, 9:52pm

I remember that NOI does not include financing cost so don’t subtract it out. They could give it to you to screww you up.