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Updated over 6 years ago on . Most recent reply

User Stats

16
Posts
3
Votes
Kim Cooper
  • Buchanan, MI
3
Votes |
16
Posts

NOI Calculation Question

Kim Cooper
  • Buchanan, MI
Posted

Should NOI subtract mortgage interest as an expense? The NOI formula that I am working off of is:

NOI = Pre-tax annual rent income + other income - vacancy - operating expenses.

Is mortgage interest included in NOI? In my head, it is clearly an expense, but where exactly am I accounting for this expense? In NOI or somewhere else? TIA!

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