Enter the total price of the building and the total square footage of the house or unit to calculate the cost per square foot.

Cost Per Square Foot Formula

The following formula is used to calculate the cost per square foot of a building.

CPSF = TC / A
  • Where CPSF is the cost per square foot
  • TC is the total cost of the building
  • A is the total area in square footage

To calculate the cost per square foot, divide the total cost by the total area.

Cost Per Square Foot Definition

A cost per square foot is a cost per unit of the area typically used in real estate to describe the value of a property by area.

Cost Per Square Foot Example

How to calculate a cost per square foot?

  1. First, determine the total cost of the building.

    Calculate the total cost of the building/floor/unit.

  2. Next, determine the total area.

    Calculate the total area.

  3. Finally, calculate the cost per square foot.

    Calculate the cost per square foot using the equation above.

FAQ

How do you determine the total cost of a building?

The total cost of a building can be determined by adding up all the expenses associated with its purchase, construction, or renovation. This includes the purchase price, construction materials, labor costs, and any other expenses incurred during the building process.

Why is calculating the cost per square foot important in real estate?

Calculating the cost per square foot is important in real estate as it provides a standardized way to compare the value of properties, regardless of their size or location. It helps buyers and investors make informed decisions by understanding the value they are getting for their investment.

Can the cost per square foot vary significantly between different locations?

Yes, the cost per square foot can vary significantly between different locations due to factors such as the local real estate market, land values, construction costs, and the overall demand for properties in the area. High-demand areas typically have higher costs per square foot compared to less sought-after locations.

cost per square foot calculator
cost per square foot formula