Rental property
Gross Rent Multiplier Calculator
Compare price, total acquisition cost, scheduled income and vacancy-adjusted income with a chosen multiplier.
Calculate your result
What this calculator estimates
Compare purchase price with annual gross rent. It combines the inputs below to produce Gross rent multiplier. Every assumption remains editable so the estimate can reflect the property, financing and location being evaluated.
Worked example
Using the displayed sample assumptions, the calculator produces 9.92x. This is an illustration, not a market quote. Change one input at a time to understand what drives the result.
Inputs and assumptions
- Purchase price — sample input: 500000 currency units
- Closing costs — optional — sample input: 0 currency units
- Initial repairs — optional — sample input: 0 currency units
- Monthly scheduled rent for all units — sample input: 4200 currency units
- Other monthly income — optional — sample input: 0 currency units
- Vacancy and credit loss — sample input: 5 %
- Annual operating costs — optional — sample input: 0 currency units
- Target gross rent multiplier — sample input: 10 x
How to interpret the result
Review cash flow together with reserves, vacancy and financing risk. Compare a conservative case with an expected case and keep a record of the assumptions used.
Common mistake to avoid
Do not treat gross rent as net operating income. Local definitions, taxes, lending practices and measurement requirements can materially change the result.
Calculation details
Gross rent multiplier = price ÷ annual scheduled income. Net yield also deducts vacancy and operating costs. The target multiplier is a user scenario.
Results included
- Gross rent multiplier
- Total acquisition basis
- Acquisition-cost multiplier
- Annual scheduled income
- Annual vacancy loss
- Annual effective income
- NOI from entered costs
- Net yield on total acquisition cost
- Price at target multiplier
- Monthly scheduled income required at target
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Reviewed 2026-09-08.