Gross Rent Multiplier Calculator
The gross rent multiplier is the fastest way to compare rental properties. Divide the price by the annual rent and you get a single number that ranks deals before any expenses are considered.
Gross rent multiplier
11.5741
- Gross yield
- 8.64%
- Annual gross rent
- 21,600
- Monthly GRM
- 138.8889
- Rent needed for the target
- 2,083.33
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
GRM = property price / annual gross rent
- GRM
- The gross rent multiplier, in years of rent
- price
- The purchase price or asking price
- annual rent
- Twelve times the monthly rent, before costs
- gross yield
- The annual rent divided by the price
How to check the result by hand
- 1
Annualise the rent
1800 a month is 21600 a year. Use the market rent, not the current rent, if the two differ.
- 2
Divide the price by the annual rent
250000 divided by 21600 is 11.5741. That is the annual GRM, read as about eleven and a half years of gross rent.
- 3
Take the reciprocal for the yield
21600 divided by 250000 is 0.0864, so the gross yield is 8.64 percent. The two figures describe the same deal.
- 4
Test against your target
A target GRM of 10 needs 250000 divided by 120, which is 2083.33 a month. The current 1800 rent falls short of that screen.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Gross Rent Multiplier page.