How to calculate Gross rent multiplier (GRM)
The Gross rent multiplier (GRM) formula, with plain worked examples you can check yourself.
Gross rent multiplier (GRM) = P ÷ R
The result is a number in ×.
Worked examples
P = 240000 · R = 30000Gross rent multiplier (GRM) = 8×
P = 288000 · R = 24000Gross rent multiplier (GRM) = 12×
P = 240000 · R = 30000Gross rent multiplier (GRM) = 8×
How to use it
- Write down the values for each letter in the formula.
- Do the brackets first, then divide or multiply.
- Check the units before you compare results.
- Compare the answer with last period or with a competitor to see if it is good or bad.
This formula belongs to Investing & Returns.
Related terms
Practice Gross rent multiplier (GRM) with real numbers
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