Gross (Net) Income Multiplier

This calculates the gross income multiplier. Enter one of four potential divisors for input: potential rental income, effective rental income, gross operating income, or net operating income (NOI).

Please do not use percentage or dollar characters or commas in the calculator.

The four calculators below are independent of each other. Choose one.



Example

You find a potential purchase with a gross operating income of $107,446. The property is being offered for $784,950. What's the gross operating income multiplier?

It's 7.3.

Various Multipliers

Similar to the gross rent multiplier, you can calculate this ratio four different ways. If you use this multiplier, you will have to define it or name it more specifically (e.g., Effective Rental Income Multiplier).

Note that the first multiplier (Potential Rental Income Multiplier) is the same as the Gross Rent Multiplier.

Formulas:

1.  Purchase Price ÷ Potential Rental Income

2.  Purchase Price ÷ Effective Rental Income

3.  Purchase Price ÷ Gross Operating Income

4.  Purchase Price ÷ Net Operating Income