What is the gross rent multiplier?

GRM is the property price divided by its gross annual rental income. It is a quick screening ratio for comparing rental properties.

It depends on the market, but lower GRMs are generally more attractive because the property costs fewer years of gross rent to pay for. Many investors look at GRMs between 4 and 12.

Does GRM account for expenses?

No — GRM uses gross rent only. For an expense-aware return, use cap rate or cash-on-cash return instead.

Gross Rent Multiplier Calculator

Price relative to gross annual rent.

Gross rent multiplier calculator

The gross rent multiplier (GRM) is a fast screening ratio: property price divided by gross annual rent. It estimates how many years of gross rent it would take to cover the purchase price, making it useful for quickly comparing rental properties before deeper analysis.

Enter the price and gross annual rent to get the GRM instantly — all calculations stay in your browser.