Gross Rent Multiplier Calculator

Calculate Gross Rent Multiplier (GRM)



Formula

The formula to calculate the Gross Rent Multiplier (GRM) is:

\[ GRM = \frac{P}{AR} \]

Where:

Definition

Example

Let's say the purchase price (P) is $500,000 and the annual rental income (AR) is $50,000. Using the formula:

\[ GRM = \frac{500,000}{50,000} = 10 \]

So, the Gross Rent Multiplier (GRM) is 10.