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Gross rent multiplier calculator

Compute the gross rent multiplier (GRM) of a property from price and annual rent.

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The Gross rent multiplier calculator turns Property price, Annual gross rent into Gross rent multiplier, instantly and for free. For instance, with Property price = $300,000.00 and Annual gross rent = $24,000.00 it returns Gross rent multiplier = 12.5.

How to use it

  1. Enter your values: Property price, Annual gross rent.
  2. Read the result instantly: Gross rent multiplier.

Frequently asked questions

What does the Gross rent multiplier calculator actually compute?

It takes Property price and Annual gross rent and derives Gross rent multiplier from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

2 values: Property price ($) and Annual gross rent ($). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Property price = $300,000.00 and Annual gross rent = $24,000.00, the calculator returns Gross rent multiplier = 12.5. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

When would I actually use this?

Setting or checking a rent, working out the yield a property really returns, and splitting a part-month at the start or end of a tenancy.

What is the most common mistake?

Quoting a gross yield. Once charges, tax, insurance, management and vacancy are taken out, the net figure is routinely a third to a half lower.

How accurate is it, and what are the limits?

Estimate only — not financial advice.

What is the difference between the Gross rent multiplier calculator and the Rent vs Buy Calculator?

This one returns Gross rent multiplier; the Rent vs Buy Calculator returns Monthly cost to buy and Monthly cost to rent. That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Rent-to-income ratio calculator is the closest one after this: Compute the share of your income that goes to rent (the 30% rule of thumb).

What else is worth having open alongside it?

Section 8 rent calculator and Maximum rent calculator — they come up in the same task often enough to be worth a second tab.

Where do the figures come from, and how current are they?

The arithmetic is exact for the figures you enter; rent caps, indexation rules and deposit limits are set locally and differ even between cities in the same country.

Further reading

All guides →
ExplainerThe Gross Rent Multiplier Is Not a YieldGRM is price divided by annual gross rent — a screening ratio that ignores vacancy, costs, financing and tax. Two properties at $300,000 with $25,000 of rent both score 12.0, and one yields 5.83 percent while the other yields 3.75.How-toHow to Calculate Rental Cash Flow (And the Yield You Need to Break Even)Rent minus charges minus the loan. On an 80 percent mortgage at 3.5 percent over 25 years, a rental only breaks even from about 7.1 percent gross yield — here is the full calculation.ExplainerWhat a Rental Property Actually EarnsGross rent minus mortgage says $15,934. The real cash flow is $1,392.56. Here is the full profit-and-loss account line by line, and the four separate returns a rental produces — of which cash flow is the smallest.ExplainerWhat Is a Cap Rate, and What Counts as a Good OneCap rate is net operating income divided by price — a return that deliberately ignores your mortgage. Here is how to compute it, and why a high one is a warning as often as a bargain.How-toHow to Calculate Prorated Rent — and Why Three Methods Give Three AnswersMove in on 18 October at $1,500 a month and you owe $677.42, $700.00 or $690.41 depending on which convention the lease uses. Agree on one before you sign, not after.ExplainerThe Most Rent You Should Agree ToThree different numbers decide a letting: the rent the agent screens, the total occupancy cost your budget has to survive, and the cash due at signing. On a $1,800 listing they are $1,800, $2,095 and $3,600.