Gross Rent Multiplier (GRM), Price-to-Rent & 1% Rule Calculator

Screen rental properties rapidly using GRM, Price-to-Rent, and the 1% Rule.

Gross Rent Multiplier (GRM)
9.38 ×
Monthly Rent-to-Price (1% Rule) 0.89 %
Estimated Annual NOI USD 23,808.00
Implied Cap Rate 6.61 %
Inputs
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
USD
Purchase price or market value of the rental property.
USD
Total gross monthly rent collected.
%
Operating expenses as a percentage of gross rent (%).
Results & Graph
Gross Rent Multiplier (GRM)
9.38 ×
Monthly Rent-to-Price (1% Rule)
0.89 %
Estimated Annual NOI
USD 23,808.00
Implied Cap Rate
6.61 %

Gross Rent Multiplier (GRM)

Graph 1 • Property Price Sensitivity Recalculates the domain equation across 50% to 150% of the primary input while holding other parameters constant.
0 × 7.6 × 15.2 × 50%: 4.69 × 4.7 50% 75%: 7.03 × 7.0 75% 100%: 9.38 × 9.4 100% 125%: 11.72 × 11.7 125% 150%: 14.06 × 14.1 150%
Graph 2 • Primary & Supporting Metric Comparison Compares the primary output alongside supporting domain benchmarks.
Gross Rent Multiplier (GRM) 9.38 × Monthly Rent-to-Price (1% Rule) 0.89 % Estimated Annual NOI USD 23,808.00 Implied Cap Rate 6.61 %
Graph 3 • Exact Output Table & Units Displays each calculated output in its exact domain unit.
Gross Rent Multiplier (GRM)9.38 ×Monthly Rent-to-Price (1% Rule)0.89 %Estimated Annual NOIUSD 23,808.00Implied Cap Rate6.61 %
Summary: At USD 360,000.00 and USD 38,400.00/yr gross rent, GRM is 9.38×, monthly rent-to-price is 0.89%, and Cap Rate is 6.61%.
Summary: At USD 360,000.00 and USD 38,400.00/yr gross rent, GRM is 9.38×, monthly rent-to-price is 0.89%, and Cap Rate is 6.61%.
⚡ Send result to: Compound Interest →ROI Calculator →TVM & APR Solver →
Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: GRM & 1% Rule Mathematical Formula

GRM = PropertyPrice / AnnualGrossRent
MonthlyRentToPrice% = (MonthlyRent / PropertyPrice) × 100
GRM = PropertyPrice / AnnualGrossRent; MonthlyRentToPrice% = (MonthlyRent / PropertyPrice) × 100
  • propertyPrice: Property Price (USD)
  • monthlyGrossRent: Monthly Gross Rent (USD)
  • operatingExpenseRatioPct: Operating Expense Ratio Pct (%)

Rounding: Intermediate calculations retain full IEEE-754 floating-point precision; displayed currency and ratios round to 2 decimal places.

Worked Example: Benchmark Scenario: GRM & 1% Rule

Screen rental properties rapidly using GRM, Price-to-Rent, and the 1% Rule.

  1. Enter the portfolio, option, lease, or corporate balance-sheet inputs.
  2. Evaluate the core equation: GRM = PropertyPrice / AnnualGrossRent; MonthlyRentToPrice% = (MonthlyRent / PropertyPrice) × 100.
  3. Inspect the primary valuation output, risk metrics, and 3 visual SVG graphs.
Result: Computes GRM & 1% Rule using GRM = PropertyPrice / AnnualGrossRent; MonthlyRentToPrice% = (MonthlyRent / PropertyPrice) × 100.

Frequently Asked Questions

How does the Gross Rent Multiplier (GRM), Price-to-Rent & 1% Rule Calculator calculate results?

It evaluates GRM = PropertyPrice / AnnualGrossRent; MonthlyRentToPrice% = (MonthlyRent / PropertyPrice) × 100 directly in your browser and updates the three domain SVG visualizations immediately as you adjust any input.

Can I compare multiple investment or financing scenarios side by side?

Yes. Click "Compare (0/3)" in the results toolbar to pin up to three scenarios side by side.

Are my financial numbers kept private?

Yes. All calculations run 100% locally in your browser with zero server uploads.

Finance & Investing · Real Estate & Home Loans

Gross Rent Multiplier (GRM), Price-to-Rent & 1% Rule Calculator: inputs, method, and how to read the result

Screen rental properties rapidly using GRM, Price-to-Rent, and the 1% Rule.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Property Price: Purchase price or market value of the rental property.
  • Monthly Gross Rent: Total gross monthly rent collected.
  • Operating Expense Ratio Pct: Operating expenses as a percentage of gross rent (%).

What the calculation includes

With the default values shown, Gross Rent Multiplier (GRM) is 9.38 ×. The calculation follows GRM & 1% Rule Mathematical Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Property Price from 360,000 USD to 396,000 USD changes Gross Rent Multiplier (GRM) from 9.38 × to 10.31 ×. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses standard quantitative finance, GAAP/IFRS operating ratios, and continuous/periodic compounding conventions.
  • For educational and analytical modeling only; consult a licensed CPA, CFA, or fiduciary advisor before executing tax or derivative transactions.

Scope: Global Financial & Corporate Valuation Standard Check the assumptions and limitations against your situation before relying on the estimate.

More in Finance & Investing: Compound Interest Calculator, ROI Calculator (Return on Investment), TVM Finance, Present Value & Effective APR Calculator.