AFFO Calculator — Adjusted Funds From Operations

This AFFO calculator shows adjusted funds from operations for REITs. Enter net income, depreciation, and maintenance capex to see true cash available for dividends instantly.

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FFO & Adjustments
AFFO Adjustments
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AFFO = FFO - Routine CapEx - Leasing Costs - Tenant Improvements - Straight-Line Rent Adjustments + Other Adjustments. AFFO per share is a key metric for REIT valuation.

AFFO Summary
📊 AFFO: —
Net Income—
Depreciation & Amortization—
Gains from Property Sales—
Other FFO Adjustments—
Funds From Operations (FFO)—
FFO Per Share—
Routine Maintenance CapEx—
Leasing Costs / Commissions—
Tenant Improvements—
Straight-Line Rent Adjustment—
Other AFFO Adjustments—
Adjusted Funds From Operations (AFFO)—
AFFO Per Share—
AFFO Calculation Breakdown
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Enter financial data to view breakdown.

Shows step-by-step calculation of FFO and AFFO with adjustments.

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Hasnain Khan

Co-Founder, Techraxy

Hasnain Khan is a digital tools developer and Co-Founder of Techraxy, a platform dedicated to building modern web-based calculators and utility tools. He focuses on tool optimization, website performance, and creating accessible user experiences across categories like automotive, finance, construction, and everyday utilities.

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Introduction to AFFO Calculator 

Adjusted funds from operations (AFFO) is a key financial metric used to evaluate the performance of real estate investment trusts (REITs). It measures a REIT’s ability to generate cash from its operations and sustain dividend payments to shareholders. Unlike standard earnings, AFFO accounts for recurring capital expenditures and other non-cash items that affect true cash flow. This AFFO Calculator helps you calculate this essential metric quickly. Enter net income, depreciation, amortization, property sale gains, maintenance capital expenditures, and straight-line rent adjustments. The calculator shows funds from operations (FFO), adjusted funds from operations (AFFO), and other useful outputs. Toolraxy built this calculator to help real estate investors make informed decisions about REIT investments and dividend sustainability.

How to Use This AFFO Calculator

            1. Enter Net Income (from the REIT’s income statement)

            2. Enter Depreciation and Amortization (non-cash charges to add back)

            3. Enter Gains on Property Sales (subtract from FFO)

            4. Enter Losses on Property Sales (add back to FFO)

            5. Enter Maintenance Capital Expenditures (routine property upkeep)

            6. Enter Straight-Line Rent Adjustments (non-cash rent adjustments)

            7. Enter Other Recurring Adjustments (optional)

            8. Enter Shares Outstanding (for per-share calculation)

            9. Enter Current Share Price (for AFFO yield)

            10. Click Calculate to see your AFFO results

Formula Section

Funds from Operations (FFO):   

FFO = Net Income + Depreciation + Amortization – Gains on Property Sales + Losses on Property Sales

Adjusted Funds from Operations (AFFO):

AFFO = FFO – Maintenance Capital Expenditures – Straight-Line Rent Adjustments – Other Recurring Items

AFFO per share:

AFFO per Share = AFFO ÷ Total Shares Outstanding

AFFO yield:

AFFO Yield = (AFFO per Share ÷ Current Share Price) × 100

Dividend payout ratio (using AFFO):

Payout Ratio = (Dividends per Share ÷ AFFO per Share) × 100

Where:

  • FFO = Funds from operations (core earnings metric for REITs)

  • AFFO = Adjusted funds from operations (true cash available)

  • Maintenance Capex = Recurring capital expenditures to maintain properties 

  • Straight-Line Rent = Non-cash adjustment for lease accounting 

Real-Life Examples Section

  • Example scenario:

    • Net income: $25 million

    • Depreciation: $2 million

    • Gains on property sales: $500,000

    • Maintenance capital expenditures: $4 million

    • Straight-line rent adjustments: $0 (for simplicity)

    • Shares outstanding: 10 million

    Calculations:

    • FFO: $25M + $2M – $0.5M = **$26.5 million**

    • AFFO: $26.5M – $4M = $22.5 million

    • AFFO per share: $22.5M ÷ 10M = **$2.25**

    Scenario comparison:

    ScenarioNet IncomeDepreciationGains on SaleMaintenance CapexFFOAFFO
    Base$25M$2M$0.5M$4M$26.5M$22.5M
    High Capex$25M$2M$0.5M$6M$26.5M$20.5M
    Low Capex$25M$2M$0.5M$2M$26.5M$24.5M
    High Gains$25M$2M$2M$4M$25.0M$21.0M

    Clear takeaway: This REIT generates $26.5M in FFO but only $22.5M in AFFO after accounting for maintenance capital expenditures. AFFO provides a more realistic picture of cash available for dividends. Higher maintenance costs or sale gains reduce AFFO and may indicate lower dividend sustainability.

FAQs

1. What is AFFO?
Adjusted funds from operations (AFFO) is a metric used to evaluate REIT performance. It measures the cash a REIT generates from operations after accounting for recurring capital expenditures and other adjustments. It is often called cash available for distribution (CAD) .

2. How is AFFO calculated?
AFFO is calculated by starting with funds from operations (FFO) and subtracting maintenance capital expenditures, straight-line rent adjustments, and other recurring items. The formula is: AFFO = FFO – Maintenance Capex – Straight-Line Rent – Other Adjustments .

3. What is the difference between FFO and AFFO?
FFO adds back depreciation and amortization to net income. AFFO goes further by subtracting recurring capital expenditures. AFFO provides a more accurate picture of cash available for dividends .

4. What is the difference between AFFO and cash flow?
AFFO is a non-GAAP metric specific to REITs. Cash flow from operations is a GAAP measure. AFFO is generally considered more accurate for REITs because it accounts for property maintenance costs .

5. What is a good AFFO?
A good AFFO is one that exceeds dividend payments. AFFO per share should be higher than dividends per share for sustainable payouts. AFFO yield of 8-12% is often considered attractive for REITs.

6. Why is AFFO important for REITs?
REITs must distribute at least 90% of taxable income as dividends. AFFO shows whether a REIT generates enough cash to sustain these dividends. It helps investors assess dividend safety and investment quality .

7. What are maintenance capital expenditures?
Maintenance capex are recurring capital expenditures needed to maintain a property’s value and revenue-generating capacity. Examples include roof repairs, HVAC replacement, carpet replacement, and other routine upkeep. Only maintenance capex is deducted in AFFO, not growth capex .

8. What is straight-line rent?
Straight-line rent is a non-cash adjustment from lease accounting that averages rent payments over the entire lease term. It often creates a difference between cash rent received and revenue recognized. This adjustment helps normalize FFO to AFFO .

Disclaimer

This AFFO Calculator is provided for educational and planning purposes only. Results are based on standard formulas and the numbers you enter. Actual AFFO calculations can vary between REITs due to different interpretations of adjustments. This tool does not constitute financial or investment advice. Consult a licensed financial advisor or investment professional before making investment decisions. Toolraxy is not responsible for any actions taken based on these calculations.

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