MihsabaShare this free calculator
Send this tool to someone who needs the calculation.
How to use
- Enter Property price.
- Enter Annual gross rent.
- Calculate, then verify input definitions before comparing properties or periods.
How it is calculated
GRM = property price ÷ annual gross rent
Example
Price 900,000 and annual rent 72,000 give GRM of 12.5× and gross rent equal to 8% of price.
Important notes
GRM ignores expense differences among properties. Use it as a screening ratio, not a substitute for NOI or net yield.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| GRM | 900000 ÷ 72000 | 12.5 |
| Rent-to-price ratio | 72000 ÷ 900000 × 100 | 8 % |
Frequently asked questions
Is a lower GRM always better?
Not always. It may reflect lower price or higher rent, but says nothing about property quality, expenses or risk.
Should inputs cover the same period?
Yes. When comparing income, expense, balance or price figures, keep the period and definitions consistent.
Is the result a final property valuation?
No. The calculator gives a numerical relationship only; real decisions also depend on location, market conditions, taxes, financing and risk.