Tool
GRM Calculator
Calculate gross rent multiplier from property value and annual rent.
Real Estate Calculators
What this tool does
Gross Rent Multiplier (GRM) compares a property's price to its gross rental income. Lower GRM values may indicate higher relative income, but market norms vary.
How to use
- Enter property value or purchase price.
- Enter gross annual rent.
- Review GRM and compare with local market benchmarks.
Formula
GRM = property value ÷ gross annual rent
Examples
Duplex purchase
Input: Value: $500,000, Rent: $48,000/yr
Output: GRM: 10.42
500,000 ÷ 48,000 ≈ 10.42.
Assumptions
- Uses gross annual rent before expenses.
- Estimate only. Not financial advice.
Common use cases
- Quickly compare rental listings
- Screen markets by rent-to-price ratio
- Summarize deals for investors
FAQ
What is a good GRM?
GRM benchmarks vary by market and property type. Compare similar assets in the same submarket.
How is GRM different from cap rate?
GRM uses gross rent; cap rate uses NOI after expenses.
Can I use monthly rent?
Convert monthly rent to annual (× 12) before calculating GRM.
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Last reviewed: 2026-05-23