Gross Rent Multiplier Calculator
Calculate gross rent multiplier from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate gross rent multiplier from your own entered figures. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. GRM uses gross rent before every expense, so it screens deals quickly but says nothing about profitability on its own.
How to use the Gross Rent Multiplier Calculator
- Enter or select property price.
- Enter or select gross monthly rent.
- Read the calculated result; change any measurement to compare alternatives.
Formula
gross annual rent=monthly rent×12; GRM=property price/gross annual rent; gross yield=gross annual rent/price×100
- price
- Property price
- rent
- Gross monthly rent
User-entered property figures only. Estimates exclude costs not entered and are not investment advice. GRM uses gross rent before every expense, so it screens deals quickly but says nothing about profitability on its own.
Worked example
For gross rent multiplier calculator, the following measurements illustrate the exact method: Property price: 300000; Gross monthly rent: 1500.
Inputs
- Property price300000
- Gross monthly rent1500
Result
- Gross rent multiplier (GRM)16.67
- Gross annual rent$18,000.00
- Gross rental yield (%)6
Results explained
- Gross rent multiplier (GRM)
- Gross rent multiplier (GRM) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. GRM uses gross rent before every expense, so it screens deals quickly but says nothing about profitability on its own.
- Gross annual rent
- Gross annual rent from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. GRM uses gross rent before every expense, so it screens deals quickly but says nothing about profitability on its own.
- Gross rental yield (%)
- Gross rental yield (%) from the formula above. User-entered property figures only. Estimates exclude costs not entered and are not investment advice. GRM uses gross rent before every expense, so it screens deals quickly but says nothing about profitability on its own.
Frequently asked questions
Divide the price by the gross annual rent. A $300,000 property renting for $1,500 a month ($18,000 a year) has a GRM of 300,000 ÷ 18,000 = 16.67.
Lower is generally cheaper relative to rent — you pay fewer years of gross rent for the property. But a very low GRM can also flag deferred maintenance, weak location or below-market rents, so investigate rather than celebrate.
GRM uses gross rent and ignores expenses entirely; cap rate uses net operating income after operating expenses. Two properties with the same GRM can have very different cap rates if their taxes, insurance or maintenance differ.
There is no universal good figure — GRM tracks local prices and rents, so compare only against recent sales of similar properties in the same market. A GRM that is low for that market is the meaningful signal.
Annual. Using monthly rent by mistake makes the GRM twelve times too small. This calculator annualises the monthly rent you enter.