Gross Rent Multiplier (GRM) Calculator

The gross rent multiplier (GRM) is the property price divided by its gross annual rent. It is a fast screening ratio that tells you how many years of gross rent would equal the purchase price, so you can rank listings before deeper study.

The tool divides the price by the gross annual rent and rounds to two decimals. If you enter monthly rent instead, it multiplies that by 12 first. A 300,000 price with 30,000 of annual rent gives a GRM of 10.

Usually yes. A lower GRM means you pay less for each dollar of rent, so the property is cheaper relative to income. A high GRM can flag an overpriced asset or a low-yield area, but always compare within the same market.

GRM uses gross rent and ignores taxes, insurance, vacancy and repairs, so it is only a rough sort. Cap rate uses net operating income after expenses, which gives a fuller read on profitability but takes more inputs to estimate.

Multiply your target GRM by the gross annual rent. The Target GRM box does this for you, so a target of 8 against 30,000 of rent shows an implied price of 240,000. Treat that as a ceiling offer, not a guaranteed value.

Use the figure that matches your question. Current rent shows the GRM at today's leases, while market rent shows what the property could earn once units turn over. Under-rented buildings look worse on current rent than they really are.

There is no universal number. Many small residential markets trade between roughly 6 and 12, but expensive metros run higher because prices outpace rents. The multiplier is only meaningful against comparable local sales.

No. It is a gross, unlevered ratio. It ignores your mortgage, operating costs and vacancy, so two properties with the same GRM can have very different cash flow once those are added in.

No. The math runs entirely in your browser, so the price and rent you type never leave your device and nothing is stored or uploaded.