Mortgages & Housing

Gross Rent Multiplier

Calculate gross rent multiplier from your own financial figures.

Your numbers

Sample inputs are illustrative. Changing currency changes labels only.

Your result

Preparing the sample calculation…

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How to use this calculator

  1. Enter property price, annual gross rent.
  2. Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
  3. Read the result with the assumptions below. Export details or save a second scenario to compare your choices.

Formula and method

Gross rent multiplier = Property price ÷ Annual gross rent.

Assumptions and limitations

Use figures for the same entity, currency and reporting period. The denominator must be positive. This ratio is descriptive and has no universal pass/fail threshold.

Worked example

With property price = 300000, annual gross rent = 30000, gross rent multiplier is approximately 10.

What the result means

GRM ignores operating expenses, vacancy and financing; it is a screening ratio rather than a complete investment analysis.

Common questions

How should I interpret gross rent multiplier?

GRM ignores operating expenses, vacancy and financing; it is a screening ratio rather than a complete investment analysis.

What should I check before using this result?

Use figures for the same entity, currency and reporting period. The denominator must be positive. This ratio is descriptive and has no universal pass/fail threshold.

Methodology and transparency

Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.