Property quick valuation.

Gross Rent Multiplier (GRM) is the simplest property valuation metric: GRM = property price / annual gross rent. 400,000 property renting for 24,000/year = 16.67 GRM. Below 8 indicates strong cash flow markets (often, Northern). Above 20 indicates appreciation-driven markets.

GRM benchmarks by market type: 4-8 = strong cash flow (Detroit, Cleveland). 8-12 = balanced (Phoenix, Tampa). 12-20 = appreciation-focused (Denver). 20+ = speculative or luxury. Same property can be smart investment in cash flow market and terrible investment in appreciation market.

GRM weakness: ignores expenses entirely. 400k property with high taxes/maintenance can have same GRM as low-cost property but very different cash flow. Use GRM for quick screening, then dive into NOI and cap rate for serious analysis. Reciprocal of GRM = gross yield (1/GRM × 100). 16.67 GRM = 6% gross yield. Useful but doesn't account for vacancies or operating costs.

A worked example

Try the defaults: property price of 400,000, annual gross rent of 24,000. The tool returns 16.67x. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Property Price and Annual Gross Rent. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

GRM = property price / annual gross rent. Lower GRM = better cash flow. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Where this fits in planning

This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.