Gross Rent Multiplier (GRM) Calculator

Calculate Gross Rent Multiplier





Definition

The Gross Rent Multiplier (GRM) is a real estate metric used to evaluate the potential profitability of a rental property. It is calculated by dividing the property price by the gross rental income.

Formula

The formula to calculate the Gross Rent Multiplier (GRM) is:

\[ \text{GRM} = \frac{\text{property price}}{\text{gross rental income}} \]

Example

Let's take a property with the following details:

The Gross Rent Multiplier (GRM) calculation is as follows:

\[ \text{GRM} = \frac{1,000,000}{85,000} = 11.76 \]