Gross Rent Multiplier Calculator

About this calculator

This calculator finds the gross rent multiplier (GRM) — a property's price divided by its gross annual rental income — a quick screening ratio that shows roughly how many years of rent it would take to “pay back” the purchase price, before any expenses.

Real estate investors use it to rapidly compare multiple rental properties side by side; a lower GRM generally suggests a better rental value relative to price. It's not as precise as cap rate since it ignores operating costs, but it's fast enough for a first-pass filter on a list of listings.