Rate Per Square Foot Calculator
Enter the full listing price, sales price, or total project cost.
Enter the total square footage of the property or area.
Enter your property details and click calculate to see the rate.
Price Per Square Foot
$0.00
Summary Breakdown:
Total Cost: $0
Total Area: 0 sq. ft.
Total Cost: $0
Total Area: 0 sq. ft.
How to Calculate Rate Per Square Foot
Calculating the rate per square foot is a fundamental skill in real estate, construction, and commercial leasing. It allows buyers, sellers, and investors to normalize the price of properties of different sizes to make an "apples-to-apples" comparison.
The Formula
The math behind calculating price per square foot is straightforward:
Rate per Sq Ft = Total Price ÷ Total Square Footage
Real World Examples
Understanding the math is easier with realistic scenarios:
- Residential Real Estate: If a home is listed for $450,000 and has a living area of 2,000 square feet, the calculation is $450,000 ÷ 2,000 = $225 per sq. ft.
- Commercial Leasing: Commercial spaces are often quoted annually. If a 1,500 sq. ft. office costs $30,000 per year, the rate is $20 per sq. ft. annually.
- Construction & Flooring: If you are installing hardwood floors and the materials plus labor cost $8,500 for a 500 sq. ft. room, your cost basis is $17 per sq. ft.
Why This Metric Matters
1. Valuation Comparison: Two houses might have the same listing price, but if one is 1,000 sq. ft. larger than the other, the larger home offers a much lower price per square foot, indicating potentially better value.
2. Market Trends: Real estate agents track the average price per square foot in specific neighborhoods to determine if a property is overpriced or a bargain.
3. Construction Estimating: Contractors rarely quote fixed prices without seeing the site; instead, they often provide rough estimates based on average rates per square foot for similar projects.