Gross rent multiplier (GRM) calculator
GRM shows how many years of gross rent equal the property price, and is used to screen properties quickly.
Loading the tool…
Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter property price, gross annual rent and market grm for similar homes.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
GRM = property price / gross annual rent. Gross yield = 100 / GRM. Estimated value = market GRM x annual rent.
Example
Inputs: Property price = 1,200,000, Gross annual rent = 100,000. Result: Gross rent multiplier: 12; Gross yield: 8.33%.
Limits and caveats
- Ignores expenses and vacancy, so two properties with the same GRM can differ a lot in profit.
- The market GRM should come from recent sales of similar properties in the same area.
Questions about this tool
Is a lower GRM better?
It means you pay fewer years of rent for the property, but check expenses and condition before deciding.
GRM versus cap rate?
GRM divides price by gross rent. Cap rate divides net income after expenses by price.
Monthly rent or annual?
Some investors use monthly rent, which gives figures 12 times larger. This tool uses annual rent.