Gross Rent Multiplier (GRM) is a valuable tool in real estate investment, providing investors with a quick and effective way to assess the potential profitability of a rental property. This calculator determines the relationship between a property’s purchase price and its rental income, offering insights into its investment viability.
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To calculate the GRM, one divides the property’s purchase price by its gross annual rental income. The resulting ratio helps investors evaluate how many years it would take for the property’s rental income to cover its cost. A lower GRM generally indicates a more favorable investment opportunity.
CALCULATORS
Income and Return Analysis
Operating Expense Analysis
Capitalization Rate (CAP)
Cash on Cash Return (COC)
Debt Service Coverage Ratio (DSCR)
Debt Yield Calculator
Gross Rent Multiplier (GRM)
Loan to Cost Calculator
Net Operating Income (NOI)
Operating Expense Ratio (OpEx)
Price to Rent Ratio
Principal & Interest Calculator