Cash-on-Cash Return Calculator
Return on cash invested.
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Real Estate
Gross Rent Multiplier Calculator
Find the GRM from property price and annual rent.
Gross rent multiplier
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Price ÷ rent.
| Monthly rent | — |
|---|---|
| Price | — |
| Annual rent | — |
| — |
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Enter your figures above to see the step-by-step working.
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How the Gross Rent Multiplier Calculator Works
The gross rent multiplier (GRM) is a quick way to size up a rental: the property price divided by its annual gross rent. A $300,000 home renting for $30,000 a year has a GRM of 10. Lower GRMs generally mean the property pays for itself faster, though it ignores expenses.
GRM is a rough screening tool for comparing similar properties in a market, not a full analysis — two properties with the same GRM can have very different expenses and cash flow.
GRM = property price ÷ annual gross rent
Frequently Asked Questions
What is a good gross rent multiplier?
Lower is generally better; many investors look for a GRM under about 10, but it varies widely by market.
How do you calculate GRM?
Divide the property price by its annual gross rental income.
What are the limits of GRM?
It ignores operating expenses, vacancy and financing, so it’s a screening tool rather than a complete measure.
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