What this calculator does
Price per square foot restates a property's price relative to its size, which makes it possible to compare homes of different sizes on a common footing. A larger house at a higher total price is not necessarily worse value than a smaller one at a lower price; dividing each by its floor area shows which one is actually cheaper per square foot of space.
It is a useful screening tool rather than a complete valuation. Two properties with the same price per square foot can still differ enormously in lot size, condition, layout and location, all of which affect what a buyer is actually getting for that rate.
The formula
Divide the purchase price by the square footage to get price per square foot. Working the other way, multiplying a target price per square foot by a given square footage gives the implied price at that rate.
| Term | Meaning |
|---|---|
| Price per square foot | Purchase price ÷ square footage. |
| Square footage | The property's floor area, usually measured as gross living area. |
| Implied price | What a property of a given size would cost at a chosen target rate per square foot. |
The inputs explained
| Field | What to enter |
|---|---|
| Purchase price ($) | The purchase price (or asking price) of the property. |
| Square footage (sq ft) | The property's floor area in square feet. |
| Target price per sq ft for comparison ($/sq ft) | A comparison rate per square foot, such as a neighbourhood average, used to work out the implied price for the same square footage. |
When to use it
Comparing homes of different sizes
Price per square foot puts a smaller renovated home and a larger older one on the same footing, which a straight price comparison cannot do on its own.
Checking a listing against neighbourhood norms
Entering a local average rate as the target price shows what a property of this size would cost at that neighbourhood benchmark, for comparison against its actual asking price.
Rough-pricing a renovation or extension
Multiplying an area being added by a plausible local rate per square foot gives a first, rough estimate of the value that added space might contribute, well before a formal appraisal.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How price per square foot changes with square footage at a fixed price
A fixed $450,000 purchase price, across a range of floor areas.
| Square footage | Price per square foot |
|---|---|
| 1,200 sq ft | $375.00/sq ft |
| 1,500 sq ft | $300.00/sq ft |
| 1,800 sq ft | $250.00/sq ft |
| 2,200 sq ft | $204.55/sq ft |
| 2,800 sq ft | $160.71/sq ft |
| 3,600 sq ft | $125.00/sq ft |
How implied price changes with the target rate at a fixed size
A fixed 1,800 sq ft floor area, against a range of target rates.
| Target price per sq ft | Implied price at target rate |
|---|---|
| $180/sq ft | $324,000.00 |
| $220/sq ft | $396,000.00 |
| $260/sq ft | $468,000.00 |
| $300/sq ft | $540,000.00 |
| $340/sq ft | $612,000.00 |
| $400/sq ft | $720,000.00 |
Questions
Is a lower price per square foot always the better buy?
Not necessarily. It ignores lot size, condition, finishes, layout efficiency and location, any of which can justify a higher rate. It is a starting comparison, not a full valuation.
Should I use gross living area or total lot size?
Price per square foot is almost always calculated against the interior floor area (gross living area), not the size of the land the home sits on, which is priced separately in most markets.
Why do smaller homes often have a higher price per square foot?
Fixed costs, such as the kitchen, bathrooms and land itself, are spread over less floor area in a smaller home, which tends to push its rate per square foot above that of a larger home with similar finishes.
Does price per square foot work for commercial property?
Yes, and it is used heavily there, though commercial rates per square foot vary enormously by property type (office, retail, industrial) and are rarely compared across those types directly.
To check that same purchase price against expected rental income, see the 1% rule screener.