Real Estate & Mortgage
Gross Rent Multiplier (GRM)
Quickly value a rental property using the gross rent multiplier method.
Your inputs
Change any value to update the result instantly.
Gross rent multiplier
10.00
Purchase price
4,00,000
Annual gross rent
40,000
Implied price at GRM 10
4,00,000
Formula and working
GRM = Purchase Price ÷ Annual Gross Rent
- 1
Collect the inputs
Purchase price = 400,000; Annual gross rent = 40,000
- 2
Apply the formula
GRM = Purchase Price ÷ Annual Gross Rent
- 3
Result
Gross rent multiplier = 10.00
Frequently asked questions
Important limitation
This is an educational estimate based only on the values and formula shown. Verify current rates, rules, units, and professional standards before relying on the result. It is not personalized financial or investment advice.
Report a mistake or request an improvement
Tell us if a formula, unit, explanation, or result needs attention. Your message will include this calculator’s name and page.
Related calculators
Cap Rate
Calculate a property's capitalization rate from net operating income and purchase price.
Net Operating Income (NOI)
Calculate a property's NOI from gross income and operating expenses.
Cash-on-Cash Return
Calculate annual pre-tax cash flow return relative to the actual cash invested.
Commercial Bridge Loan
Estimate interest-only payments and total cost of a short-term commercial bridge loan.
Cost Segregation Tax Savings
Estimate accelerated depreciation and tax savings from a cost segregation study.
Debt Service Coverage Ratio (DSCR)
Calculate DSCR to see whether a property's income covers its debt payments.