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Gross Rent Multiplier Calculator

Sale price ($):
Potential gross income ($):

About Gross Rent Multiplier Calculator

The Gross Rent Multiplier Calculator is used to calculate the gross rent multiplier.

Gross Rent Multiplier Definition

Gross Rent Multiplier (usually abbreviated as GRM) is the ratio of the price of a real estate investment to its annual rental income before expenses. It is useful for comparing and selecting investment properties where operating costs can be expected to be uniform across properties.

Gross Rent Multiplier Formula

The gross rent multiplier calculation formula is as follows:

Gross rent multiplier = Sale price / Potential gross income

References

  1. http://en.wikipedia.org/wiki/Gross_Rent_Multiplier