Real Estate Investing Metrics Every Buyer Should Know
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Gross Rent Multiplier Calculator
Verified formula Updated Jun 2026 Private — runs on your device
Verified formula
Private
Gross rent multiplier
12.50
- Years of rent to equal price
- 12.5
For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.
How to use the Gross Rent Multiplier Calculator
The Gross Rent Multiplier Calculator works out your gross rent multiplier, along with 1 related figure in an instant. Enter property price and gross annual rent and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
- Enter the property price.
- Enter the gross annual rent.
- Read off your gross rent multiplier, together with years of rent to equal price — the calculator updates automatically, with no button to press.
Formula
The Gross Rent Multiplier Calculator uses the formula:
Gross rent multiplier = Property price ÷ Gross annual rent
Worked example
For example, with property price of ₹10,000,000 and gross annual rent of ₹800,000, the gross rent multiplier is 12.50.
| Property price | ₹10,000,000 |
|---|---|
| Gross annual rent | ₹800,000 |
| Gross rent multiplier | 12.50 |
|---|---|
| Years of rent to equal price | 12.5 |
Results are estimates for educational use, not professional advice.
Frequently asked questions
GRM is the property price divided by its gross annual rent. A 1,00,00,000 property renting for 8,00,000 a year has a GRM of 12.5.
It is a quick screening tool to compare similar income properties. A lower GRM suggests the price is lower relative to the rent it produces.
It ignores expenses, vacancies and financing, so it is a rough first filter. Use cap rate and cash flow for a deeper analysis.
It depends on the market. Compare a property's GRM with similar local properties rather than to a single universal number.
The Gross Rent Multiplier Calculator uses the formula: Gross rent multiplier = Property price ÷ Gross annual rent. For example, with property price of ₹10,000,000 and gross annual rent of ₹800,000, the gross rent multiplier is 12.50.
Enter the property price. Enter the gross annual rent. Read off your gross rent multiplier, together with years of rent to equal price — the calculator updates automatically, with no button to press.
Related guides
Gross Rent Multiplier Table: Gross rent multiplier by Property price
Reference table of gross rent multiplier for Gross Rent Multiplier across a range of property price values — exact, engine-computed figures you can read off at a glance.
How to Calculate Gross Rent Multiplier: Formula, Steps & Examples
Learn how to calculate Gross Rent Multiplier — the formula explained step by step, with worked examples and a free calculator to check your answer.