# Gross Rent Multiplier Calculator

> Gross rent multiplier calculator: compare property price to annual rent with the GRM formula to screen rental real estate deals before touring. Free, no signup.

- **Canonical URL:** https://boringtoolskit.com/gross-rent-multiplier-calculator/
- **Category:** Finance & Investing
- **Evidence level:** authored-methodology
- **Reviewed:** July 26, 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

GRM = property price / annual gross rental income, where annual gross rental income is the monthly gross rent multiplied by 12.

## Assumptions

- The rent you enter is the monthly figure. Annualising it twice, or entering an annual rent, will skew the ratio by a factor of twelve.
- Gross rent means before vacancy, management, repairs, taxes and insurance, so the multiplier says nothing about cash flow.
- The price is the purchase price. Closing costs, capital improvements and any debt on the property are excluded.
- A purchase price with no rent, or a rent with no price, produces no usable multiplier; the tool needs both.

## Common questions

### How do you calculate gross rent multiplier?

Find the property's annual gross rental income first, by multiplying the monthly gross rent by 12. Divide the property price by that annual figure to get GRM. For example, a $300,000 property renting for $2,000 a month collects $24,000 a year, and 300000 / 24000 = GRM 12.5. Interpret the result by comparing it against comparable properties in the same market: a lower GRM means you pay less per rent dollar, but it is a screening signal only, not a measure of net cash flow.

## Sources

- [Calculation methodology and verification standard](/methodology/)

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