Free Gross Rent Multiplier Calculator
Evaluate a property investment quickly by dividing the purchase price by the annual gross rental income.
USD
USD
Gross Rent Multiplier
10.42
Annual Gross Rent$38,400
Implied Price at GRM 10$384,000
Gross Rent Multiplier vs Monthly Gross Rent
How the Gross Rent Multiplier Works
The GRM is a screening tool that compares a property's price to its gross rental income without factoring expenses.
Formula
GRM = Purchase Price / Annual Gross Rental Income
Usage
Example Calculation
A property is listed at $400,000 and rents for $3,200 per month.
- 01Calculate annual gross rent: $3,200 x 12 = $38,400
- 02GRM = $400,000 / $38,400 = 10.42
- 03A GRM of 10.42 means it takes about 10.4 years of gross rent to equal the purchase price
- 04At a GRM of 10, the implied price would be $38,400 x 10 = $384,000