Free tool
GRM Calculator — Japan Real Estate
Enter a listing price and monthly rent to calculate the Gross Rent Multiplier, gross yield, and see how the deal compares to Tokyo's station-level benchmarks.
Use the market rent for this station and layout — not the seller's stated figure.
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GRM benchmark — 50 Tokyo stations
Station-level GRM medians, gross yield ranges and walk-time corridors. One page. No spam. Unsubscribe anytime.
GRM benchmark reference
GRM = Purchase price ÷ Monthly rent. Thresholds are station-level medians, not absolute rules.
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Submit a deal for analysis →How to use this calculator
Enter the purchase price in 万円 or 億円, and the monthly rent in yen. Use the realistic market rent for that station and layout — not the seller's stated rent, which may be inflated or locked into an old contract.
What is GRM?
GRM = Purchase price ÷ Monthly rent. It is the dominant screening metric used by Japanese institutional investors and experienced foreign buyers. Unlike cap rate, it requires no operating cost assumptions — making it fast and consistent across listings. A GRM of 150x means the price is 150× the monthly rent, a 12.5-year gross payback.
GRM and gross yield are inverses: yield (%) = 1200 ÷ GRM. A GRM of 150x = 8% gross yield.
Why station-level context matters
The same GRM means different things at different stations. A 200x GRM at Shimokitazawa reflects deep tenant demand and low vacancy risk. The same 200x at a peripheral station with declining population is a different risk profile entirely. Always read GRM in the context of station liquidity, walk time, layout, and building age.
GRM vs cap rate
Cap rate subtracts operating expenses (management, taxes, vacancy, repairs) from gross rent to get NOI, then divides by price. In Japan, operating costs typically run 20–30% of gross rent, pushing cap rate 1.5–2.5 points below gross yield. GRM is the screening tool. Cap rate is the underwriting tool.