Gross Rent Multiplier Calculator
Calculate GRM from property price and gross rent, or estimate a price from a target gross rent multiplier.
Property breakdown
How GRM is used
Gross rent multiplier is a quick valuation ratio: property price divided by annual gross rent. It can help compare similar properties in the same market before collecting detailed expense information.
GRM does not account for vacancy, taxes, insurance, maintenance or financing. Two properties with the same GRM can have very different NOI and cash flow.
Frequently asked questions
Is a lower GRM better?
A lower GRM means a lower price relative to gross rent, but operating expenses and property quality still matter.
Does GRM include expenses?
No. It uses gross rent only.
How is GRM different from cap rate?
Cap rate uses net operating income after operating expenses, while GRM uses gross rent before expenses.
Rental-property calculations are estimates for screening and education, not investment, tax, lending or legal advice. Verify rents, expenses, financing and local conditions before making a decision.