{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"gross-rent-multiplier"},"result":{"entity_type":"calculator","id":"gross-rent-multiplier","calculator_id":"gross-rent-multiplier","canonical_url":"https://tttkmbb.com/investing/gross-rent-multiplier","name":"Gross Rent Multiplier Calculator","title":"Gross Rent Multiplier Calculator – Price to Annual Gross Rent Ratio","category":"investing","category_name":"Investing & Real Estate","tool_name":"calculate_gross_rent_multiplier","featured_mcp_tool":false,"description":"Divides a property's price by its annual gross rent to get the gross rent multiplier (GRM), the number of years of gross rent needed to pay the price, together with the gross yield.","use_when":"You want a quick screen of an income property's price relative to its rent, or to compare listings before analysing expenses.","do_not_use_when":"Operating expenses or vacancy matter for the decision (use cap-rate) or the property is financed and you want the return on your cash (use cash-on-cash-return). Informational only; not financial advice.","inputs":[{"name":"property_price","label":"Property price","type":"number","required":true,"max":1000000000000,"exclusive_min":0,"description":"Asking or purchase price.","example":300000},{"name":"annual_gross_rent","label":"Annual gross rent","type":"number","required":false,"max":1000000000000,"exclusive_min":0,"description":"Total rent per year before expenses; takes precedence over monthly_rent.","example":30000},{"name":"monthly_rent","label":"Monthly rent","type":"number","required":false,"max":10000000000,"exclusive_min":0,"description":"Monthly rent (× 12), used when annual_gross_rent is omitted.","example":2500}],"outputs":[{"name":"annual_gross_rent","label":"Annual gross rent used","type":"number","decimals":2,"description":"annual_gross_rent, or monthly_rent × 12."},{"name":"grm","label":"Gross rent multiplier","type":"number","decimals":2,"description":"property_price / annual_gross_rent."},{"name":"years_of_rent_to_pay_price","label":"Years of gross rent to pay the price","type":"number","unit":"years","decimals":2,"description":"Same number as the GRM, read as a payback time in years of gross rent."},{"name":"gross_yield_percent","label":"Gross yield","type":"number","unit":"%","decimals":2,"description":"annual_gross_rent / property_price × 100 = 100 / GRM."},{"name":"interpretation","label":"Interpretation","type":"string","decimals":4,"description":"Position relative to the commonly cited 4–7 range; a lower GRM means less price per unit of rent, which favours buyers."}],"input_schema":{"type":"object","properties":{"property_price":{"description":"Asking or purchase price.","type":"number","maximum":1000000000000,"exclusiveMinimum":0,"examples":[300000]},"annual_gross_rent":{"description":"Total rent per year before expenses; takes precedence over monthly_rent.","type":"number","maximum":1000000000000,"exclusiveMinimum":0,"examples":[30000]},"monthly_rent":{"description":"Monthly rent (× 12), used when annual_gross_rent is omitted.","type":"number","maximum":10000000000,"exclusiveMinimum":0,"examples":[2500]}},"additionalProperties":false,"required":["property_price"]},"output_schema":{"type":"object","properties":{"annual_gross_rent":{"description":"annual_gross_rent, or monthly_rent × 12.","type":"number"},"grm":{"description":"property_price / annual_gross_rent.","type":"number"},"years_of_rent_to_pay_price":{"description":"Same number as the GRM, read as a payback time in years of gross rent. Unit: years.","type":"number","x-unit":"years"},"gross_yield_percent":{"description":"annual_gross_rent / property_price × 100 = 100 / GRM. Unit: %.","type":"number","x-unit":"%"},"interpretation":{"description":"Position relative to the commonly cited 4–7 range; a lower GRM means less price per unit of rent, which favours buyers.","type":"string"}}},"formula":"annual_gross_rent = annual_gross_rent or monthly_rent × 12; grm = property_price / annual_gross_rent; gross_yield_percent = 100 / grm","method":"The GRM ignores vacancy, operating expenses, financing and taxes, so it is a screening ratio only; the 4–7 rule of thumb varies widely by market and property type. Informational mathematics only; not financial advice.","sources":[{"name":"Wikipedia – Gross rent multiplier","url":"https://en.wikipedia.org/wiki/Gross_rent_multiplier","type":"reference","retrieved_at":"2026-09-24"},{"name":"Wikipedia – Capitalization rate","url":"https://en.wikipedia.org/wiki/Capitalization_rate","type":"reference","retrieved_at":"2026-09-24"}],"freshness":{"type":"static","max_age_seconds":null,"note":"Deterministic formula with fixed constants; results never go stale. Inputs supplied by the caller determine the output."},"examples":[{"name":"300,000 price, 30,000 annual rent","inputs":{"property_price":300000,"annual_gross_rent":30000},"expected":{"annual_gross_rent":30000,"grm":10,"years_of_rent_to_pay_price":10,"gross_yield_percent":10,"interpretation":"High (above the typical 4–7 range): price is high relative to rent; lower is better for buyers"},"url":"https://tttkmbb.com/api/v1/calculate/gross-rent-multiplier?property_price=300000&annual_gross_rent=30000"},{"name":"250,000 price, 1,800 monthly rent","inputs":{"property_price":250000,"monthly_rent":1800},"expected":{"annual_gross_rent":21600,"grm":11.57,"gross_yield_percent":8.64},"url":"https://tttkmbb.com/api/v1/calculate/gross-rent-multiplier?property_price=250000&monthly_rent=1800"}],"faq":[{"q":"Is a low GRM always good?","a":"Not necessarily: a low multiplier can signal high expenses, a weak neighbourhood or deferred maintenance. Confirm with the cap rate and a full expense analysis."},{"q":"Gross or net rent?","a":"Gross: the multiplier uses rent before any expenses, which is why it can be computed from a listing alone."}],"tags":["gross rent multiplier","grm","price to rent ratio","rental property screening","gross yield"],"related":[{"calculator_id":"cap-rate","reason":"Yield after vacancy and operating expenses."},{"calculator_id":"rental-yield","reason":"Gross and net yield of a rental home."},{"calculator_id":"rent-vs-buy","reason":"Compare renting and buying the same home."}],"links":{"html":"https://tttkmbb.com/investing/gross-rent-multiplier","markdown":"https://tttkmbb.com/investing/gross-rent-multiplier.md","json":"https://tttkmbb.com/investing/gross-rent-multiplier.json","api":"https://tttkmbb.com/api/v1/calculate/gross-rent-multiplier","schema":"https://tttkmbb.com/api/v1/calculators/gross-rent-multiplier","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-24"},"timestamp":"2026-09-24T03:51:38Z"}