Gross Rent Multiplier Calculator
Compare a property's price to its gross annual rent, and turn a target multiplier into an implied value.
Quick answer
The gross rent multiplier is property price divided by gross annual rent: GRM = price / annual rent. A GRM of 12 means the price is twelve years of rent. Gross yield is its inverse, 1 / GRM.
Gross Rent Multiplier Calculator
Use a multiplier from comparable properties.
Gross Annual Rent
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Gross Yield (1 ÷ GRM)
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Gross Rent Multiplier
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Implied Value at Target GRM
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vs. Your Price
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Implied value at different multipliers
Value at Different GRMs
| GRM | Implied value (₹) | vs. your price (₹) | vs. your price (%) |
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Assumptions & method
- GRM = property price ÷ gross annual rent. Gross annual rent = monthly rent × 12 when you enter monthly rent.
- Gross yield = gross annual rent ÷ price = 1 ÷ GRM.
- Implied value = target GRM × gross annual rent. The table steps the multiplier by 2 around your target.
- Rent is gross: vacancy, operating expenses, taxes, financing and capital costs are not included.
- GRM is only meaningful against similar properties in the same market. It is not an appraisal.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How the gross rent multiplier works
The gross rent multiplier is a fast screening ratio used to compare rental properties. You divide the price by the gross annual rent, before any expenses, vacancy or financing costs. A property priced at 5,000,000 that rents for 420,000 a year has a GRM of about 11.9, which is the same as a gross yield of 8.4%. Run the ratio in reverse and it becomes a rough valuation tool: multiply a property's annual rent by the GRM that similar properties trade at to get an implied value. Because costs are ignored, treat GRM as a first filter, then check net income and cash flow.