Gross rent multiplier compares property price with gross rental income before expenses.
Gross Rent Multiplier Calculator
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Gross rent multiplier
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Table of Contents
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What is Gross Rent Multiplier?
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How to Use This Calculator
- Enter or select Property price, Gross rental income.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
GRM = property price/annual gross rent
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Variables Explained
| Input | What it means |
|---|---|
| Property price | The stated purchase or selling amount, in the same currency as the related costs. |
| Gross rental income | Use the measured or stated value for this item, with the unit or category shown beside the field. |
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Worked Example
A 240,000 price and 24,000 annual gross rent give GRM=10.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- Annual and monthly rent produce different ratios; expenses and vacancy are not captured by GRM.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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