Free · Mortgage and real estate calculators 🏠
Property Price to Annual Rent Multiple Calculator
Compare a property price with its gross annual rental income.
- Formula & worked example
- Private in your browser
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Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Edit a calculated value to solve backwards, or lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
A property price of 300,000 divided by gross annual rent of 30,000 gives a gross rent multiplier of 10.
Gross rent multiplier = property price ÷ gross annual rent
Worked example
Enter these known values and leave the other values blank.
- Property price
- 300000 USD
- Gross rental income
- 30000 USD / yrs
- Gross rent multiplier
- 10
Assumptions and limitations
- It is a gross-income multiple, not a net cash-flow payback calculation. Vacancy, maintenance, taxes, insurance, financing and other expenses are not deducted.
- Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.
Common questions
Is the multiplier a payback period?
It is a gross-income multiple, not a net cash-flow payback calculation. Vacancy, maintenance, taxes, insurance, financing and other expenses are not deducted.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.
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