Property GRM (Gross Rent Multiplier) Calculator

The gross rent multiplier (GRM) is the ratio of a property’s price to its annual gross rent. GRM shows how many multiples of one year’s gross rent equal the property price. Example: a property priced at Rp2,000,000,000 with rent of Rp10,000,000 per month has annual rent of Rp120,000,000, so its GRM is 16.6667.

The formula: GRM = property price divided by annual gross rent. If you only know monthly rent, multiply by 12 first. Example: Rp2,000,000,000 divided by Rp120,000,000 = 16.6667.

All three use price and rent, but their components differ. GRM uses annual gross rent: price divided by gross rent. Rental yield is its inverse: gross rent divided by price times 100 percent, so GRM = 100 divided by yield. Cap rate differs from both because it uses NOI, i.e. net rent after deducting operating costs and excluding mortgage payments. Because GRM ignores all costs, it cannot replace cap rate analysis.

There is no universal number that counts as good. A reasonable GRM varies by city, property type, and market conditions. A more sensible approach is to compare a property’s GRM with similar properties in the same area. The low, medium, and high labels in this calculator only describe its numeric range, not a recommendation to buy or sell.

GRM only uses gross rent, so it ignores operating costs, vacancy rates, taxes, financing costs, and price appreciation potential. Two properties with the same GRM can have very different profitability once costs are counted. Results on this page are educational estimates, not property investment advice.

The standard formula uses annual gross rent. If your data is monthly, multiply by 12 first. The calculator on this page does this automatically when you fill in the monthly rent field.

They are two sides of the same ratio: GRM = 100 divided by rental yield in percent, and rental yield = 100 divided by GRM. Example: a GRM of 16.6667 equals a 6 percent gross rental yield, because 100 divided by 16.6667 = 6.