Financial Calculation Summary • Business
FFO Calculator
Calculate Funds From Operations (FFO) for REITs by adding depreciation back to net income.
Prepared on
For informational & planning purposes
FFO Calculator
Calculate Funds From Operations (FFO) for REITs by adding depreciation back to net income.
- business & economics
- finance
- business
Positive=Gain, Negative=Loss
Funds From Operations
Key Takeaway: Amount ($K) decreases from $500 (Net Income) to $50 (- Gains), a net change of $-450 (-90.0%).
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Guide
How to read this calculator
- 1Save your calculations by bookmarking this page with your inputs in the URL.
- 2Try different scenarios to understand how changes affect your results.
- 3Share this calculator with friends or family who might find it useful.
- 4Use the results as a starting point for conversations with financial advisors.
- 5Bookmark this page and revisit quarterly to track your progress toward goals.
Enter your values to calculate the result quickly and accurately.
Step-by-Step Instructions
Enter the required values in the input fields.
Review the calculated results.
Use the results to inform your decisions.
Use when valuing REITs, calculating AFFO, or analyzing real estate investment performance.
- •REIT Investors
- •Real Estate Analysts
- •Portfolio Managers
- •Researchers
Review your results to gain insights into your financial situation.
What Each Result Means
Result
The primary calculated value.
Interpretation: Use this value to guide your financial planning.
What to Do With Your Results
Double-check your inputs and consider consulting a professional for complex scenarios.
Alex
Looking to optimize their financial strategy using the Ffo.
The Challenge
Alex needs to understand the long-term impact of their decisions regarding Ffo.
Starting Values
Calculation Breakdown
Input initial parameters into the calculator.
Initial setup complete.
Analyze the projected outcomes.
Strategic insight gained.
Results
Total Benefit
$15,000
Projected over 10 years.
Key Insights
- Early planning leads to better financial outcomes.
- Small changes in inputs can have large long-term effects.
Still have questions? Check our financial glossary for definitions or explore our learning resources.
Overview & Strategic Context
The FFO (Funds From Operations) Calculator is the primary performance metric used by Real Estate Investment Trusts (REITs). Traditional 'Net Income' is a poor measure for real estate because it includes depreciation expense, which assumes real estate loses value over time (often the opposite is true). FFO adds back depreciation and subtracts gains/losses on property sales to show the true operating cash flow generated by the REIT's portfolio.
Methodology & Formula
The formula is:
FFO = Net Income + Depreciation + Amortization - Gains on Property Sales
*(If there was a Loss on Sale, it is added back, so the formula is technically: - Gains + Losses)*