Gross Rent Multiplier (GRM) Calculator

Gross rent multiplier (GRM) is one of the simplest ways to compare rental properties: property price divided by gross annual rent. A lower GRM generally means a property generates more rent relative to its price, a faster way to screen deals than working through a full expense breakdown.

Unlike cap rate, GRM ignores operating expenses entirely, which makes it faster to calculate (you only need the asking price and the rent) but less precise, since two properties with the same GRM can have very different actual profitability depending on their expenses.

How does this calculator work?

Enter the property's price and the gross monthly rent it collects (or would collect).

The calculator first annualizes the rent (monthly rent × 12) to put it on the same yearly basis as the price, since GRM is always a price-to-annual-rent ratio, not price-to-monthly-rent.

It then divides price by that annual rent figure to get the GRM. A GRM of 10, for example, means the property is priced at 10 times what it collects in rent over a year.

It also inverts the same figure (annual rent ÷ price) to show gross rental yield as a percentage, a more intuitive way to read the same relationship for anyone used to thinking in yields rather than multiples.

A target GRM field also works backward: it solves price = target GRM × annual rent, showing the purchase price that would hit whatever GRM you're aiming for at the rent you entered.

For more on how GRM fits into a broader commercial real estate valuation toolkit, see CFI's gross rent multiplier guide or Rocket Mortgage's explainer.

Worked example

A $300,000 property renting for $2,500 per month.

Gross annual rent

$30,000

GRM

10.00

Gross rental yield

10.00%

How the numbers work

$2,500 a month is $30,000 a year. Dividing the $300,000 price by that gives a GRM of 10, meaning the property costs 10 times its annual gross rent.

The inverse, 10%, is the gross rental yield: the return on the purchase price from rent alone, before any expenses or vacancy are subtracted.

Use GRM for a first-pass comparison across multiple listings, then move to the Cap Rate Calculator or the full Rental Property Calculator once you've narrowed the list, since GRM alone can make a property with unusually high expenses look just as attractive as one with low expenses, as long as the rent and price are similar.