Break Even Calculator
Estimate how long it will take for your property investment to pay for itself and start generating profit.
Open Calculator →Real Estate Gross Rent Multiplier Property Calculator
Quickly evaluate property investment potential by calculating the Gross Rent Multiplier (GRM) based on purchase price and rental income.
Evaluate Rental Property Investment Potential
The Gross Rent Multiplier (GRM) is a fast and easy metric for investors to compare rental properties. It is calculated by dividing the property's purchase price by its expected annual rental income. GRM helps you assess if a property is over- or under-valued relative to its rental yield.
Formula
GRM = Property Price ÷ Annual Rental Income
Example
If a property costs $300,000 and its annual rental income is $30,000, the GRM is:
300,000 ÷ 30,000 = 10
A GRM of 10 indicates that it would take 10 years of gross rental income to cover the property purchase price. Lower GRM values usually suggest a better investment opportunity.
Related Calculators
Cash Flow Calculator
Quickly calculate your rental property's monthly or yearly cashflow and determine if your investment is generating a profit.
Open Calculator →Net Operating Income Calculator
Calculate the Net Operating Income (NOI) of your property to assess profitability and investment potential.
Open Calculator →