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✖️ Gross Rent Multiplier Calculator

GRM is the quickest way to screen deals: price divided by annual gross rent. Below 10x is generally good. Compare as-is vs pro forma GRM.

📍 Property Address (optional)
InputsYour Numbers
Property
Purchase Price?
$
Monthly Rent?
$
Pro Forma
Pro Forma Price (or Market Value)?
$
Pro Forma Monthly Rent?
$
As-Is AnalysisCurrent
Enter values to see results
GRM
--
target below 12x
Annual Gross Rent
--
rent x 12
Gross Yield
--
rent / price
1% Rule Check
--
rent / price
GRM Calculation
Purchase Price--
Monthly Rent--
Annual Gross Rent--
GRM = Price / Annual Rent--
Implied Price at GRM Targets
Implied Price at 8x GRM--
Implied Price at 10x GRM--
Implied Price at 12x GRM--
Current GRM vs 10x target--
Pro FormaAfter Plan
Enter pro forma values
Pro Forma GRM
--
vs as-is
Pro Forma Yield
--
vs as-is
GRM Improvement
--
lower is better
Rent Increase
--
per month
Pro Forma vs As-Is
As-Is GRM--
Pro Forma GRM--
GRM Improvement--

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1
Enter Price & Rent
GRM only needs two numbers: purchase price and annual gross rent (monthly rent x 12). It's the fastest deal-screening tool.
2
Understand the Scale
GRM below 8x = very strong. 8-12x = good. 12-15x = fair. Above 15x = likely overpriced. These benchmarks vary by market -- verify with local comparables.
3
Check the 1% Rule
The 1% rule says monthly rent should be at least 1% of purchase price. It's a rough shortcut -- a $200K property should rent for $2,000/mo. The calculator shows your exact percentage.
4
Use the Implied Price Table
The table shows what price the property should be at 8x, 10x, and 12x GRM for your current rent. Compare to the ask price to see if you are overpaying.
5
Enter Pro Forma Rent
If you plan to raise rents, the pro forma GRM shows how the deal looks at higher income. A 12x deal can become a 10x deal with a modest rent increase.
6
GRM is a Screener, Not a Decision
GRM ignores expenses, vacancies, and financing. Use it to quickly filter deals. Anything passing the GRM screen should then get a full cash flow analysis.

Gross Rent Multiplier (GRM) is the fastest deal-screening metric in real estate. Divide the purchase price by the annual gross rent and you have the GRM. Lower is better -- it means you are paying fewer years of gross rent for the property.


GRM is useful because it only requires two numbers and can be calculated in seconds. It is a quick filter before doing deeper analysis. If a deal has a GRM of 18x, it is almost certainly overpriced for an income-focused investor (though it might make sense as an appreciation play in a hot market).


GRM vs Cap Rate: GRM uses gross rent; cap rate uses NOI after expenses. GRM is faster but less accurate. Cap rate is more work but tells the full income story. Use GRM to screen, cap rate to decide.

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