Free real estate calculator

Gross Rent Multiplier Calculator

Compare the purchase price with annual gross scheduled rental income.

By Calculate My Property EditorialUpdated September 30, 2026Professional review pending
01 / Your inputs

Start with your property.

Property1 inputs
USD
Use the agreed purchase price, excluding closing costs.
Acquisition2 inputs
USD
Cash fees paid at acquisition; do not include the down payment.
USD
Include materials, labor, permits and a contingency.
Income4 inputs
USD / month
Use rent for one unit; enter other income separately.
units
Rent above is per unit.
USD / year
Parking, laundry or other recurring revenue.
%
Apply to scheduled gross income; include credit loss.
Operating expenses8 inputs
USD / year
Use the expected post-purchase bill, including reassessment.
USD / year
Property and landlord cover, not mortgage insurance.
%
Charged against collected income in this model.
%
Routine repairs as a share of collected income.
%
Future roofs and replacements. Deducted after NOI.
USD / year
Include only owner-paid dues.
USD / year
Exclude amounts paid directly by tenants.
USD / year
Legal, accounting, licensing and other recurring costs.
Financing5 inputs
%
Loan amount as a share of purchase price.
%
Contract note rate; fees and points are entered separately.
years
Remaining amortization period, not a balloon maturity.
%
One point equals 1% of loan principal.
Projection4 inputs
years
Cash flows occur at year end; sale happens in the final year.
%
Scenario assumption, not a price forecast.
%
Net income and reserves grow at the same assumed rate.
%
Selling expenses as a share of future sale price.
All amounts in USD.
Your estimate

Gross rent multiplier

12.15×Based on your inputs · USD
Annual gross rent
$28,800
Purchase price
$350,000
Cap rate
5.09%
The formula

GRM = value ÷ annual gross rent

Assumptions & limitations (1)
  • Illustrative, pre-tax analysis. Capital reserves are deducted after NOI. Operating percentages apply to collected income.
02 / Your next decisionCap RateDSCRCash on Cash Return
External resource

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Planning estimate. Editorially sourced; independent professional review is pending. How we calculate
Worked example

Follow the default numbers.

With purchase price of $350,000, monthly rent of $2,400, the model gives gross rent multiplier: 12.15×.

The formula is grm = value ÷ annual gross rent. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.

A fast comparison with a narrow denominator

Gross rent multiplier divides property value by annual gross scheduled rent and other recurring income. It makes no adjustment for vacancy, taxes, insurance, repairs or financing. A lower multiplier is not automatically better when operating costs or collection losses differ. Use the same definition of gross rent for every property compared.

GRM is not a payback period

The multiplier can look like a number of years because both price and annual rent are dollars. It is not the time required to recover your invested cash: you do not keep all gross income, and the property can change value. Follow NOI and cap rate for an expense-aware comparison, then cash on cash for the effect of financing.

Keep your assumptions with the result

Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.