Calculate annual gross rent multiplier from purchase price and scheduled rent, then estimate implied price and required rent at your editable target.
What this baseline models
Local workspace
No local scenario yet
Your first valid edit or Use example creates Property 1 · Base scenario.
Public calculator · no account required
Use purchase price and annual scheduled property rent before vacancy, collection losses, operating expenses, financing and taxes. Exclude non-rental income. The target is your assumption, not a market benchmark or recommendation; 10.00× is only an editable example.
Actual annual GRM
10.00×
Purchase price divided by annual scheduled rent
Implied purchase price at target
$300,000.00
Arithmetic only, not market value or a valuation opinion
Required annual rent at target
$30,000.00
Purchase price divided by the entered target
Required monthly rent equivalent
$2,500.00
Calculated directly before rounding to cents
Annual scheduled rental income and its monthly equivalent use one input.
Open an unsaved browser preview that stays in its URL. It will not replace your active local scenario.
The compressed scenario stays in the link fragment and is decoded in your browser. Use the report's print action to print or save it as a PDF.
Deterministic checks based only on this scenario's inputs and outputs.
Gross rent ignores vacancy, expenses and debt service. GRM is not cap rate, cash-on-cash return, net yield or an actual payback period. Compare only consistent rent periods and income definitions.
Annual rent changes by −10%, −5%, 0%, +5% and +10%, rounded to supported cents. Price and target stay fixed. Each row reruns the same engine; duplicate rent amounts remain labeled and unsupported boundary rows are omitted.
| Rent change | Annual rent | Actual GRM | Implied price at target |
|---|---|---|---|
| -10.00% | $27,000.00 | 11.11× | $270,000.00 |
| -5.00% | $28,500.00 | 10.53× | $285,000.00 |
| Base | $30,000.00 | 10.00× | $300,000.00 |
| +5.00% | $31,500.00 | 9.52× | $315,000.00 |
| +10.00% | $33,000.00 | 9.09× | $330,000.00 |
Formula reference
Money is displayed in USD and rates are entered as percentages where applicable. Formula version gross-rent-multiplier@1.0.0 stays attached to the result.
Purchase price ÷ Gross scheduled annual rent
Annual scheduled rental income only, before vacancy, expenses, financing and taxes. Zero rent makes this ratio unavailable.
Gross scheduled annual rent × Target annual GRM
Arithmetic at a user-selected ratio, not an appraisal or valuation opinion. Zero rent gives $0 without implying zero market value.
Purchase price ÷ Target annual GRM
The annual scheduled rent that matches the entered price and positive target, calculated from unrounded inputs.
Purchase price ÷ Target annual GRM ÷ 12
Calculated directly before rounding to cents, rather than dividing the rounded annual result.
Gross scheduled annual rent ÷ 12
A display equivalent of the single annual rent input; it is not a separately editable assumption.
Example scenario
A $300,000 purchase and $30,000 annual scheduled rent produce 10.00× actual GRM. At a separate example target of 9.00×, implied price is $270,000 and required annual rent is $33,333.33. The editable form starts at 10.00×.
Open the example in the calculatorPurchase price
$300,000.00
Annual rent
$30,000.00
Implied price at 9.00×
$270,000.00
Required monthly rent at 9.00×
$2,777.78
FAQ
This calculator explicitly uses annual scheduled property rent. Appraisal conventions also use other periods and income definitions. Convert periods consistently before comparing ratios; a monthly-rent multiplier is 12 times the annual-rent multiplier for the same price and rent.
No. It is your editable assumption. The 10.00× default is only an example, not a market benchmark, investment rating or valuation opinion.
Actual GRM is unavailable because division by zero is undefined. Implied price is mathematically $0 at the entered positive target, without asserting that market value is zero. Required rent remains calculable.
GRM divides price by gross rent. Cap rate divides NOI by property value. Gross rent ignores vacancy, expenses and debt service; GRM is not cap rate, cash-on-cash return, net yield or an actual payback period.
Read the supporting methodology, then compare this result with another view of income, financing, or project returns. Each calculator uses its own transparent assumptions.