# FFO Calculator – Funds From Operations

URL: https://speedycalculator.com/calculators/finance/ffo/
Last updated: 2026-10-25

> The FFO calculator works out funds from operations for a real estate investment trust (REIT) – net income plus depreciation and amortization, plus losses and minus gains on property sales – plus FFO per share and price-to-FFO.

## Inputs

- Net income
- Depreciation
- Amortization
- Losses on property sales
- Gains on property sales
- Shares outstanding
- Share price

## Results

- Funds from operations (FFO)
- FFO per share
- Price to FFO

## Formula

```
FFO = net income + depreciation + amortization + losses on sales − gains on sales
FFO per share = FFO ÷ shares
P/FFO = share price ÷ FFO per share
```

## Explanation

Because property depreciation doesn't reflect real changes in value, REITs report FFO (as defined by Nareit) instead of relying on earnings. P/FFO is the REIT equivalent of the P/E ratio.

### How to use the FFO Calculator – Funds From Operations

- **Net income**
- **Depreciation**
- **Amortization**
- **Losses on property sales**
- **Gains on property sales**
- **Shares outstanding**
- **Share price**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter net income, depreciation, amortization, gains and losses on property sales, shares outstanding and the share price.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterNet incomeAmount in your currencyDepreciationAmount in your currencyAmortizationAmount in your currencyLosses on property salesAmount in your currencyGains on property salesAmount in your currencyShares outstandingA numberShare priceAmount in your currency

### What each result means

- **Funds from operations (FFO)** = [Net income] + [Depreciation] + [Amortization] + [Losses on property sales] - [Gains on property sales]
- **FFO per share** = [Funds from operations (FFO)]÷[Shares outstanding]
- **Price to FFO** = [Share price]÷[FFO per share]

### Example values

How the main result changes when **Net income** changes and everything else stays at the example values above:

Net incomeFunds from operations (FFO)25,000,00055,000,00037,500,00067,500,00050,000,00080,000,00062,500,00092,500,00075,000,000105,000,000100,000,000130,000,000

## Worked example

Inputs — Net income: $50,000,000; Depreciation: $30,000,000; Amortization: $5,000,000; Losses on property sales: $1,000,000; Gains on property sales: $6,000,000; Shares outstanding: 40,000,000; Share price: $30.

Results — **Funds from operations (FFO) = $80,000,000.00**; FFO per share = $2.00; Price to FFO = 15.

## FAQ

**What is FFO?**
Funds from operations – a REIT's cash earnings measure.

**Why add back depreciation?**
Real estate often holds or gains value despite accounting depreciation.

**What is a good P/FFO?**
It varies by sector; 12–20 is common.

**What formula does the FFO Calculator – Funds From Operations use?**
FFO = net income + depreciation + amortization + losses on sales − gains on sales.


## Sources

- [Nareit – Funds from operations](https://www.reit.com/)