Gross Rent Multiplier Calculator
Calculate gross rent multiplier (GRM) for rental properties. Enter price and rent to see how quickly rent recoups your investment.
Screen properties with a single quick metricTry: Property price=300000, Monthly rent=2000, Number of units=1
How to Use
Enter the property price, monthly rent per unit, and number of units. The calculator divides price by total monthly rent to produce the gross rent multiplier. A lower GRM suggests a cheaper property relative to its rental income.
GRM is a quick screening tool. Use it to compare similar properties in the same market, then dig deeper with cap rate and cash flow analysis.
Frequently Asked Questions
What is a good GRM?
GRM varies widely by market. In expensive areas, 15–20 may be normal. In cash-flow markets, 6–10 is common. Lower is generally better, but GRM ignores expenses — always follow up with cap rate analysis.
How is GRM different from cap rate?
GRM uses gross rent (before expenses). Cap rate uses net operating income (after expenses). GRM is faster to calculate but less precise. Two properties with the same GRM can have very different cap rates.
Should I use annual or monthly rent for GRM?
GRM is traditionally calculated with annual rent. This calculator uses monthly rent for convenience and multiplies internally. The result is the same.