How the GRM Calculator works

Calculate gross rent multiplier from price and rent.

Show the math

Formula

Gross Rent Multiplier = purchase price ÷ annual gross rent. Lower is generally better; benchmark against local market.

Inputs

Purchase price
Annual gross rent

Rates, terms, and payments are illustrative estimates, not a quote or a commitment to lend. Not a substitute for underwriting. Equal Housing Lender. See our licensing and disclosures page.

For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

GRM (Gross Rent Multiplier): Property price divided by annual gross rent, a fast screening ratio that ignores expenses.

Browse the full real estate glossary

Gross Rent Multiplier Calculator

Property Information

Purchase Price

Monthly Rent

Annual Rent (optional, leave 0 to use monthly × 12)

Target GRM (for comparison)

Typical GRM: 8-12 for good deals, 12-15 average, 15+ may be overpriced

About Gross Rent Multiplier

What It Measures:

Relationship between property price and gross rent
Quick screening tool for investment properties
Does not include expenses or financing
Useful for comparing similar properties
Simple metric for initial property evaluation

Typical GRM Ranges:

8-10: Excellent income-to-price ratio
10-12: Good income-to-price ratio
12-15: Average income-to-price ratio
15-20: Lower income-to-price ratio
20+: May indicate overpriced property