FREE Gross Rent Multiplier (GRM) Calculator for Investors
Enter the property price and monthly gross rental income to calculate the GRM; The lower the GRM, the better the investment may be from an income perspective
Gross Rent Multiplier (GRM) Calculator
Calculate Your GRM
Your Gross Rent Multiplier (GRM)
The GRM indicates how many years of gross rental income would be needed to pay for the property.
What is Gross Rent Multiplier?
The Gross Rent Multiplier (GRM) is a simple metric used by real estate investors to compare properties and perform initial investment screening. It measures the ratio of a property's price to its annual gross rental income.
How to Use This Calculator
Enter the property price and monthly gross rental income to calculate the GRM. The lower the GRM, the better the investment may be from an income perspective.
Interpretation Guide
| GRM Range | Interpretation |
|---|---|
| Below 6 | Potentially excellent income property |
| 6-8 | Good income potential |
| 8-10 | Average income potential |
| 10-12 | Below average income potential |
| Above 12 | May indicate lower income potential; further analysis recommended |
Limitations
GRM is a simple screening tool and doesn't account for operating expenses, property condition, location quality, or future appreciation potential. Always perform a complete analysis before making investment decisions.