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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

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. 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

DividendBondHedgingArbitrageLeverageAsset allocation

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