AFFO Calculator - Adjusted Funds From Operations
AFFO adjusts funds from operations for recurring expenditures so REIT and property investors can look at a more cash-like earnings figure. This page also keeps the formula, examples, FAQs, and references close by so you can check the result with confidence.
What This AFFO Calculator - Adjusted Funds From Operations Helps You Do
AFFO starts with funds from operations and then subtracts recurring capital spending and maintenance items while adding recurring rent growth. Review the formula and examples below if you want to see how the result is derived.
This page is meant to give you a fast answer, but it also helps you double-check the math before you make a decision. Start with the inputs that you already know, run the calculation, and then compare the output with the formula, examples, and FAQs below so you can see whether the answer fits the situation you are modeling.
If the result looks off, the usual causes are a unit mismatch, a missing decimal, the wrong scenario, or a value that needs to be entered as a rate instead of a total. The notes on this page are designed to make those checks easy without forcing you to leave the calculator and search for context elsewhere.
- Use the calculator first for a quick estimate.
- Use the formula to understand how the result is built.
- Use the examples to compare common use cases.
- Use the references when the answer depends on a standard or assumption.
Common Checks
A quick result is useful, but the best result is one that still makes sense when you look at it a second time. If you are comparing scenarios, try changing one input at a time so you can see which variable has the biggest impact on the final answer. That makes it much easier to spot whether the calculation matches your expectations.
It also helps to keep the context of the problem in mind. A calculator can tell you the math, but you still need to decide whether the input represents a total, a rate, an average, or a category-specific assumption. When in doubt, start with a simple example from the page and scale up from there.
- Check that every unit matches the rest of the problem.
- Keep rates, totals, and averages separate.
- Adjust one variable at a time when testing scenarios.
- Use the smallest realistic input first, then scale upward.
Scenario Planning
This calculator is especially useful when you want a quick answer before you commit time, money, or effort. Try one baseline input set, then change a single number and compare the result so you can see how sensitive the answer is to that variable.
That makes the page useful for more than just arithmetic. It becomes a small decision aid that helps you compare options, test assumptions, and explain the final number with confidence when you need to share it with someone else.
Result
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How to Calculate AFFO Calculator - Adjusted Funds From Operations
- Enter the income base: Start with net income and the common FFO adjustments.
- Add recurring property adjustments: Include rent increases, recurring capital expenditures, and routine maintenance.
- Read AFFO: The calculator shows the funds available after recurring property costs are considered.
AFFO Calculator - Adjusted Funds From Operations Formula
| Variable | Meaning | Unit |
|---|---|---|
| FFO | Funds from operations after common non-cash adjustments | $ |
| Recurring capex | Ongoing capital spending needed to maintain the property | $ |
| Routine maintenance | Regular maintenance expenditure | $ |
Worked Examples
- Net income: $500,000
- Depreciation and amortization: $150,000
- Gains from property sales: $125,000
- Losses from property sales: $80,000
- Interest income: $75,000
- Rent increases: $50,000
- Capital expenditures: $60,000
- Routine maintenance: $35,000
Result: $485,000
This shows a positive AFFO after recurring property costs are deducted.
- Net income: £240,000
- Depreciation and amortization: £70,000
- Gains from property sales: £30,000
- Losses from property sales: £12,000
- Interest income: £8,000
- Rent increases: £14,000
- Capital expenditures: £20,000
- Routine maintenance: £10,000
Result: £268,000
A higher AFFO suggests strong recurring cash generation.
- Net income: €680,000
- Depreciation and amortization: €210,000
- Gains from property sales: €40,000
- Losses from property sales: €100,000
- Interest income: €12,000
- Rent increases: €90,000
- Capital expenditures: €85,000
- Routine maintenance: €45,000
Result: €908,000
The recurring capex load is handled after the FFO-style adjustments.
How to Interpret Your Results
| Range | Meaning | Action |
|---|---|---|
| Strong positive AFFO | Recurring operations support cash flow | The property base may have room for dividends or reinvestment. |
| Moderate AFFO | Cash flow is positive but needs monitoring | Watch recurring capex and leasing trends. |
| Weak or negative AFFO | Recurring costs are pressuring cash flow | Review maintenance, capex, and property performance. |
Frequently Asked Questions
References
Last reviewed: March 2026