FFO Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

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If you are comparing alternatives, the fastest way to stay grounded is to make the assumptions explicit. FFO Calculator estimates funds from operations from net income, depreciation/amortization, and gains on property sales and lets you change those inputs one at a time.

What this calculator does

FFO Calculator estimates funds from operations from net income, depreciation/amortization, and gains on property sales. The visible form contains Net income, Real estate depreciation & amortization, Gains on property sales. These are the inputs that define this calculator’s scope. If a value, rule, or adjustment is not represented by a working field, it should not be assumed to be included in the result.

How to use it

Enter Net income, Real estate depreciation & amortization and Gains on property sales. Keep monetary inputs in the same currency, or use the currency selector when one is provided. Before calculating, recheck Net income and the other values that materially affect the result. For a clean comparison, hold the other inputs constant while changing one assumption at a time so you can see what is driving the result.

How the calculation works

Current FFO estimate = net income + depreciation/amortization − gains on property sales. This is the calculation method that should anchor any manual check of the output. If a displayed field does not affect the current calculation, that limitation is stated below rather than silently treating the field as part of the formula.

Example

With the displayed example values (Net income = 100,000, Real estate depreciation & amortization = 40,000, and Gains on property sales = 0) and the remaining defaults unchanged, the current calculator returns $140,000.00 for funds from operations. Replacing those defaults with your own values recalculates the same relationship; change one input at a time if you want to see which assumption is driving the difference.

How to interpret the result

FFO is commonly used as a real-estate operating performance measure because property depreciation can make net income less comparable with recurring operations. Compare results produced from the same definitions and time period. A mathematically larger or smaller number is not automatically better unless the financial context makes that direction meaningful.

Limitations and notes

REIT reporting may also adjust for impairments, unconsolidated entities, noncontrolling interests, and other Nareit-defined items. This simplified version is not a substitute for a company’s reported FFO reconciliation. Where the calculator depends on estimates, rates, accounting classifications, or future behavior, test more than one plausible scenario before making a decision.