Gross Rent Multiplier and Rental Income Calculator
Handy gross rent multiplier calculator, rental income calculator, and return on investment and sale price calculator. This post is a follow up to my previous real estate blog about gross rent multipliers. You will need Microsoft Excel to be able to download this file.
When you open the file you will notice that I have color-coded it in shades of blue. Do not type anything in the dark blue boxes. The value of these boxes automatically changes when you input numbers into the light blue boxes. You can enter various sale prices, interest rates on your mortgage, various rent levels and expected vacancy levels, as well as estimated utility costs and real estate taxes for the property. All of these factors will then compute your expected rate of return on your investment as well as the gross rent multiplier (GRM) in both months and years. You will notice on the table that the more income you derive from the property and the lower the sale price, the higher your rate of return will be and the lower your GRM will be (as it will take less time to recoup your investment).
If you have any questions on how this calculator works, or if for some reason you cannot download it, please email me at allthingsfinancial@yahoo.com and I will be happy to send it to you directly or answer any questions that you might have.
As always, any comments or feedback is welcome!
Please click the following link to access the Mortgage ROI GRM Calculator
Please note: the best way to access the Mortgage ROI GRM Calculator above is to right-click on the link and select “save target as”. Opening the file in your Internet browser window will limit the Excel capabilities. If you save the file to your computer’s desktop and then open it in Excel you will have access to all of Excel’s functions and the program will not run in your Internet browser.