Everyone in the narrator's neighborhood thinks that the narrator is mad but the narrator does not think that he is mad. In the text, the narrator said "but why will you say that I am mad?" which shows that he does not think that he is mad.
The narrator met this old man, the old man was nice to the narrator and the narrator was nice to the old man. The text says "I love the old man, he had never wronged me." which shows that the old man was very nice to the narrator.
The narrator did not like the old man's eye. The narrator said in the text that "Whenever it fell upon me, my blood ran cold." which shows that he really doesn't like the old man's eye.
The narrator went into the old man's room every night, for seven nights to see if he could remove the eye. He was unsuccessful so he decided to kill the man so he wouldn't have to see the old man's eye anymore.
The neighbors heard the old man's cry for help and they called the police so they could investigate what had happened.
The police were satisfied with the investigation and stayed to chat for a bit. While the narrator was slowly going mad, he had heard heart beating and it drove him insane. He hit his breaking point and confessed that he killed to old man.