Unlock true profitability for your real estate investments with our intuitive FFO Calculator. Quickly determine Funds From Operations (FFO) by inputting net income, depreciation, amortization, and property gains/losses, essential for analyzing REITs and property performance.
Formula:
The Funds From Operations (FFO) formula is:
FFO = Net Income + Depreciation (real estate related) + Amortization (real estate related) - Gains on Sale of Property + Losses on Sale of Property
Where:
- Net Income: The company's profit after all expenses, taxes, and interest.
- Depreciation: A non-cash expense representing the decrease in value of real estate assets over time.
- Amortization: A non-cash expense for certain real estate-related intangible assets.
- Gains on Sale of Property: Profits realized from selling real estate assets.
- Losses on Sale of Property: Losses incurred from selling real estate assets.