About the GRM Ratio Calculator
What is the GRM Ratio Calculator?
The gross rent multiplier (GRM) is the number of years of gross rent needed to equal the property price. It is a fast screening tool: the lower the GRM, the more rent you get for your money.
Enter the price and monthly rent to get the GRM, the gross rental yield and how the rent compares with the popular "1% rule".
How to use the GRM Ratio Calculator
- Property Price (₹) (sample: 90,00,000)
- Monthly Rent (₹) (sample: 30,000)
- Press Calculate GRM (results also refresh as you type). The result card shows the Gross Rent Multiplier, along with Gross annual rent, Gross rental yield, Monthly rent as % of price (1% rule) and Reading.
Formula used
GRM = Property price ÷ (Monthly rent × 12)
- Gross yield = 1 ÷ GRM × 100
- 1% rule = monthly rent should be about 1% of the price (common in the US, rarely met in India)
GRM ignores expenses and vacancy, so use it to shortlist and then check the net yield or cap rate.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Property Price (₹) | 90,00,000 |
| Monthly Rent (₹) | 30,000 |
| Result | Value |
|---|---|
| Gross Rent Multiplier | 25× |
| Gross annual rent | ₹3,60,000 |
| Gross rental yield | 4% |
| Monthly rent as % of price (1% rule) | 0.33% |
| Reading | Moderate rental value |
Tips for using the GRM Ratio Calculator
- A GRM of 25 means a 4% gross yield; Indian metro flats often show GRMs of 25–40.
- Compare GRMs only within the same city and property type.