GRM = Purchase Price ÷ Gross Annual Rent

Debt Service Coverage Ratio = Net Operating Income / Debt Service (P&I)

Equity Multiple = Total Cash Distributions / Total Equity Invested

Loan To Value = Mortgage Amount / Property Market Value x 100

Explore how capitalization rate (cap rate) helps investors.

Return on Assets

A quick summary on the Gross Rent Multiplier and its uses.