Gross Rent Multiplier Calculator
Divide property price by annual gross rent to calculate an annual gross rent multiplier.
Formula
GRM = property price / annual gross rent
Annual gross rent multiplier ≈ (240,000)÷(24,000)
How to use
- Enter the property price.
- Enter annual gross rental income in the same currency.
- Read the annual gross rent multiplier.
Examples
- Property 240,000 divided by annual rent 24,000 gives GRM 10.
Frequently asked questions
Does rent include operating expenses?
Use rent before operating expenses and debt payments.
Can I use monthly rent?
Multiply it by 12 first; this calculator uses annual rent.
Is this the time to break even?
No. Expenses, vacancies, financing and changes in property value are excluded.
Sources
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