Gross Rent Multiplier Calculator
Divide a property's price by its annual rent to find the gross rent multiplier, a quick gauge for comparing rental investments.
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- No sign-up
Enter the property price and annual rent to see the GRM.
Worked example
With these example inputs:
- Property price$500,000
- Annual rent$40,000
Gross rent multiplier: 12.50
- The other way round0.08
- If the first figure were 10% higher13.75
Frequently asked questions
What is the gross rent multiplier?
GRM is the property price divided by its gross annual rent. A $500,000 property renting for $40,000 a year has a GRM of 12.5.
How is GRM used?
It is a fast screening tool: a lower GRM can signal a cheaper property relative to rent. Unlike cap rate, it ignores expenses, so use it for quick comparison only.