Gross Income Multiplier Formula

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Gross Income Multiplier is a metric used in real estate to determine the value of a property based on its gross rental income. Check FAQs
GIM=PSPEGI
GIM - Gross Income Multiplier?PSP - Property Sale Price?EGI - Effective Gross Income?

Gross Income Multiplier Example

With values
With units
Only example

Here is how the Gross Income Multiplier equation looks like with Values.

Here is how the Gross Income Multiplier equation looks like with Units.

Here is how the Gross Income Multiplier equation looks like.

16.3636Edit=450000Edit27500Edit
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Gross Income Multiplier Solution

Follow our step by step solution on how to calculate Gross Income Multiplier?

FIRST Step Consider the formula
GIM=PSPEGI
Next Step Substitute values of Variables
GIM=45000027500
Next Step Prepare to Evaluate
GIM=45000027500
Next Step Evaluate
GIM=16.3636363636364
LAST Step Rounding Answer
GIM=16.3636

Gross Income Multiplier Formula Elements

Variables
Gross Income Multiplier
Gross Income Multiplier is a metric used in real estate to determine the value of a property based on its gross rental income.
Symbol: GIM
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Property Sale Price
Property Sale Price refers to the amount of money exchanged between the buyer and seller in a real estate transaction.
Symbol: PSP
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Effective Gross Income
Effective Gross Income is the total income generated by a property after deducting vacancy and credit losses, providing a more accurate representation of its revenue.
Symbol: EGI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Mortgage and Real Estate category

​Go Cost Approach Appraisal
PV=RC-D+VL
​Go Vacancy Rate
VR=UVacant100UTotal
​Go Effective Gross Income
EGI=GRI+OI-VBD
​Go Gross Rental Income
GRI=PVGRM

How to Evaluate Gross Income Multiplier?

Gross Income Multiplier evaluator uses Gross Income Multiplier = Property Sale Price/Effective Gross Income to evaluate the Gross Income Multiplier, The Gross Income Multiplier is a metric used in real estate to determine the value of a property based on its gross rental income. Gross Income Multiplier is denoted by GIM symbol.

How to evaluate Gross Income Multiplier using this online evaluator? To use this online evaluator for Gross Income Multiplier, enter Property Sale Price (PSP) & Effective Gross Income (EGI) and hit the calculate button.

FAQs on Gross Income Multiplier

What is the formula to find Gross Income Multiplier?
The formula of Gross Income Multiplier is expressed as Gross Income Multiplier = Property Sale Price/Effective Gross Income. Here is an example- 8 = 450000/27500.
How to calculate Gross Income Multiplier?
With Property Sale Price (PSP) & Effective Gross Income (EGI) we can find Gross Income Multiplier using the formula - Gross Income Multiplier = Property Sale Price/Effective Gross Income.
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