Compute funds from operations for a REIT.
Please do not make financial decisions based on these results.
What is the FFO Calculator?
Compute funds from operations for a REIT. To use the FFO Calculator, enter net income, depreciation and amortization, gains on property sales, shares; it returns ffo, ffo per share, and shows them instantly as you type.
Where the FFO Calculator fits
Compute funds from operations for a REIT. The main figure it returns is the FFO, worked out from the values you enter.
It belongs with the other accounting & microeconomics tools. If you are comparing options or checking a result from another angle, try the Operating Cash Flow Calculator, EBIT Calculator or the EBT Calculator — Earnings Before Tax.
How to use the FFO Calculator
- Enter your numbers. The inputs are Net income ($), Depreciation and amortization ($), Gains on property sales ($), Shares. Use numbers from the same accounting period so the ratios are comparable. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the FFO, and the cards below show FFO per share. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the FFO Calculator using the default values shown in the calculator above:
Inputs
| Net income ($) | 12,000,000 |
|---|---|
| Depreciation and amortization ($) | 8,000,000 |
| Gains on property sales ($) | 2,000,000 |
| Shares | 50,000,000 |
Results
| FFO | $18,000,000.00 |
|---|---|
| FFO per share | $0.36 |
With these inputs the calculator returns FFO: $18,000,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Net income ($) from 12,000,000 to 14,400,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| FFO | $18,000,000.00 | $20,400,000.00 | +13.3% |
| FFO per share | $0.36 | $0.41 | +13.3% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the FFO Calculator reports FFO and ffo per share. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
Why do REITs report FFO?
Real estate depreciation is non-cash and overstates the decline in property value.
Why use average balances?
Ratios that compare a flow (sales, income) with a balance (assets, equity) are fairer when the balance is averaged over the period.
What is the cash conversion cycle?
It is DIO plus DSO minus DPO: the days between paying suppliers and collecting from customers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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