Rental Rate per Square Foot Calculator

Total Monthly Rent ($)

Total Square Footage (sq. ft.)

Monthly Rate: per sq. ft.

Annual Rate: per sq. ft.

function calculateRentalRate() { var rent = parseFloat(document.getElementById('monthlyRent').value); var sqft = parseFloat(document.getElementById('squareFootage').value); var resultDiv = document.getElementById('rentalResult'); var monthlySpan = document.getElementById('monthlyResult'); var annualSpan = document.getElementById('annualResult'); if (isNaN(rent) || isNaN(sqft) || rent <= 0 || sqft <= 0) { alert("Please enter valid positive numbers for both rent and square footage."); resultDiv.style.display = 'none'; return; } var monthlyRate = rent / sqft; var annualRate = (rent * 12) / sqft; monthlySpan.innerHTML = '$' + monthlyRate.toFixed(2); annualSpan.innerHTML = '$' + annualRate.toFixed(2); resultDiv.style.display = 'block'; }

How to Calculate Rental Rate Per Square Foot

Understanding the rental rate per square foot is essential for both commercial tenants and residential renters to compare the value of different properties accurately. While total monthly rent tells you your budget impact, the square foot rate reveals the true market value of the space you are acquiring.

The Rental Rate Formula

There are two primary ways to look at these costs: monthly and annually. In residential real estate, monthly figures are common, while in commercial real estate, annual rates are the industry standard.

Monthly Rate: Total Monthly Rent ÷ Total Square Footage
Annual Rate: (Total Monthly Rent × 12) ÷ Total Square Footage

Why This Metric Matters

Comparing a $3,000/month apartment to a $3,500/month apartment is difficult without context. If the $3,000 unit is 800 square feet, you are paying $3.75 per sq. ft. However, if the $3,500 unit is 1,200 square feet, you are only paying $2.92 per sq. ft., making the larger apartment a significantly better value per unit of space.

Practical Example

Imagine you are looking at a commercial storefront with the following details:

Total Space: 2,500 square feet
Monthly Rent: $5,000

Using the calculator, we find that the monthly rate is $2.00 per square foot. For commercial leasing purposes, this would be quoted as $24.00 per square foot annually ($2.00 x 12 months).

Factors Influencing the Rate

Several variables impact the price you pay per square foot, including:

Location: Properties in central business districts or high-demand neighborhoods command higher rates.
Amenities: Included utilities, security, gym access, or parking can inflate the square foot cost.
Lease Type: In "Triple Net" (NNN) leases, the rent might look lower per square foot because the tenant also pays for taxes, insurance, and maintenance separately.
Floor Level: In high-rise buildings, higher floors often have a higher price per square foot due to better views.

SEO Tip: When comparing properties, always ask if the "Total Square Footage" refers to usable square feet (the space you actually occupy) or rentable square feet (which includes shared common areas like lobbies and hallways).