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.

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.