Skip to content
ENExplore Calculators

Gross Rent Multiplier Calculator

Work out gross rent multiplier instantly with clear inputs, formula shown and shareable results.

About Gross Rent Multiplier Calculator

The gross rent multiplier is price divided by annual gross rent — a fast screening ratio for comparing properties before doing full expense analysis. Its reciprocal is the gross yield, which is why a lower multiplier means a cheaper income stream.

Formula

Gross rent multiplier

GRM = price / annual gross rent; gross yield = 1 / GRM

Worked example

With the default values below, Gross Rent Multiplier Calculator returns Gross Rent Multiplier of 17.593. Change any input above and every figure here is recalculated in your browser.

Inputs used

Property Priceminimum 0
9,500,000
Annual Gross Rentminimum 0
540,000
Target Multiplieraccepts 2–60
14

Results

Gross Rent Multiplier
17.593
Price That Meets Your Target Multiplier
$7,560,000.00
Rent Needed To Justify This Price
$678,571.43
Implied Gross Yield
5.684%

Step by step

  1. 1Values used
  2. 2Gross rent multiplier
  3. 3Gross Rent Multiplier= 17.593
  4. 4Price That Meets Your Target Multiplier= 7,560,000.00
  5. 5Rent Needed To Justify This Price= 678,571.43
  6. 6Implied Gross Yield= 5.684

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why use GRM at all?

It needs only two numbers, so it screens a long list quickly. It is a filter, not a valuation.

What is its weakness?

It ignores operating expenses entirely, so two properties with the same GRM can have very different net income.

Related Calculators

Gross Rent Multiplier Calculator | Calcrivo