## About This Tool

The online Gross Rent Multiplier Calculator is used to calculate the gross rent multiplier.

## Gross Rent Multiplier Definition

Gross Rent Multiplier (usually abbreviated as GRM) is the ratio of the price of a real estate investment to its annual rental income before expenses. It is useful for comparing and selecting investment properties where operating costs can be expected to be uniform across properties.

## Gross Rent Multiplier Formula

The gross rent multiplier calculation formula is as following:

Gross rent multiplier = Sale price / Potential gross income

## References

- http://en.wikipedia.org/wiki/Gross_Rent_Multiplier