Price Per Square Foot Calculator
Use the calculator below to calculate the price per square foot given the price or rent and the area in square feet, yards, or meters.
Price Per Square Foot:
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How to Calculate the Price Per Square Foot
The price per square foot is used for several things, from property purchases to home renovations. It’s useful as a uniform metric to compare and evaluate the cost of projects or the value of properties.
This metric is also often used when purchasing packaged materials. For example, a bundle of roofing is equal to 33 sq. ft. Often, the package has its own price; in order to determine the cost per square foot, you will need to calculate it yourself so you can get a better idea of the total cost for your project.
You can calculate the price per square foot using a simple formula.
Price Per Square Foot Formula
The formula for calculating the price per square foot is straightforward. The formula is:
price per square foot = total price or cost / total square footage
Where:
- total price or cost is the overall price of the property, package or bundle of material, or the total cost of a project.
- total square footage is the total area (in square feet) of the property, material, or project.
So, the price per square foot is equal to the total price divided by the total area in square feet.
For example, let’s say you’re interested in buying a home listed for $300,000. The total area of this house is 2,500 square feet.
To determine the price per square foot, you can divide the total cost of the house ($300,000) by its total square footage (2,500 sq ft).
price per square foot = $300,000 / 2,500 sq ft = $120/sq ft
Thus, the house costs $120 per square foot.
When using this method with packaged materials, such as the bundle of roofing, you would use the same formula.
Price Per Square Foot Applications
The price per square foot metric is frequently used in various sectors, especially real estate. Here are some of its applications:
- Real Estate: Buyers, sellers, and real estate agents often utilize this metric to compare property values in different neighborhoods or regions. It helps determine if a property is overpriced or a bargain in its respective market and is often used when comparing rental properties.
- Renovations: Homeowners and contractors use the price per square foot to estimate the cost of renovations or home improvements. For instance, understanding the price per square foot of installing hardwood can help homeowners budget appropriately.
- Commercial Leasing: In commercial real estate, rent is sometimes determined based on the price per square foot, especially in retail spaces. It helps businesses gauge the cost-effectiveness of leasing a particular space.
- Construction: When building homes or commercial properties, understanding the cost per square foot can help with budgeting and determining the financial feasibility of a project.
- Material Purchase: By breaking down the bundled cost of something into its square foot cost, you can now compare costs more evenly across different materials. For example, while shingles are sold by the bundle, aluminum panels are not. By getting the cost per square foot of shingles, you can better compare the cost of the two projects.
The price per square foot is a commonly used metric whenever a standardized means of assessing value, cost, or comparison is needed.