Gross Rent Multiplier Calculator
Quick valuation check using price divided by rent.
Enter your values
ⓘ Live results
Results
- Gross Rent Multiplier
- 11.36
- Annual gross rent
- $26,400.00
- Implied value at GRM 8
- $211,200.00
- Implied value at GRM 10
- $264,000.00
Quick answer
A lower GRM generally means a property generates more rent relative to its price; typical GRMs range from about 4 to 12 depending on the market.
GRM = purchase price / annual gross rent
How to use the Gross Rent Multiplier Calculator
- 1Enter the purchase price and monthly gross rent.
- 2Compare the resulting GRM to similar properties in the area.
- 3Use it as a screening tool only — it ignores expenses, unlike cap rate.
Worked example
Using the values the calculator loads with:
Inputs
- Purchase price300000 $
- Monthly gross rent2200 $
Results
- Gross Rent Multiplier11.36
- Annual gross rent$26,400.00
- Implied value at GRM 8$211,200.00
- Implied value at GRM 10$264,000.00
Frequently asked questions
Is GRM better than cap rate?
GRM is faster to calculate but ignores operating expenses, so it's best for quick comparisons, not final decisions.
What's a good GRM?
It varies widely by market — always compare against similar local rentals rather than a fixed benchmark.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.