Cost Per Square Foot Calculator
Divides a property's total price by its square footage to produce a per-square-foot value. Buyers, sellers, and appraisers use it to compare homes of different sizes and benchmark against neighborhood averages.
About this calculator
Cost per square foot is one of the most widely used metrics in real estate valuation and comparison shopping. The formula is straightforward: Cost per sq ft = totalPrice / squareFootage. For example, a $350,000 home with 1,750 sq ft costs $200 per square foot. This metric normalizes price across properties of different sizes, making it easy to spot overpriced listings or undervalued opportunities relative to comparable homes. It is also used by builders to estimate new construction budgets and by appraisers as one input in the sales comparison approach. Keep in mind that cost per square foot varies significantly by location, finishes, lot value, and whether the figure includes finished vs. total square footage — always compare like-for-like.
How to use
A buyer is comparing two homes: Home A is listed at $420,000 with 2,100 sq ft, and Home B is $390,000 with 1,800 sq ft. For Home A: $420,000 / 2,100 = $200 per sq ft. For Home B: $390,000 / 1,800 = $216.67 per sq ft. Despite being cheaper overall, Home B costs more per square foot. If the neighborhood average is $205/sq ft, Home A is priced at market while Home B is slightly above. This comparison helps buyers prioritize which property offers better value for their budget.
Frequently asked questions
Why does cost per square foot vary so much between neighborhoods?
Land value is often the dominant driver of price variation — in high-demand urban areas, the lot itself can account for 50–70% of a property's value, inflating cost per square foot even for modest homes. Local amenities, school districts, walkability scores, and proximity to employment centers all push prices higher. Construction quality and finishes also play a role: a luxury high-rise and a basic apartment building in the same zip code can have dramatically different per-square-foot costs. Always compare within the same property type, age, and submarket for meaningful results.
How do I use cost per square foot to evaluate whether a home is overpriced?
Start by pulling recent comparable sales (comps) within a half-mile radius of the same property type and similar age — most MLS systems or sites like Zillow display this data. Calculate the average cost per square foot across 4–6 recent comps and compare it to your target property. If the listing is more than 10–15% above the comp average without a clear justification (superior finishes, larger lot, recent renovation), it may be overpriced. Always factor in that ground-floor space, finished basements, and garage square footage are typically valued differently than above-grade living area.
What is the average cost per square foot to build a house in the US?
As of 2024, new construction costs typically range from $100–$200 per square foot for standard builds and $200–$400+ per square foot for custom or luxury homes, depending on location, materials, and labor markets. High-cost states like California, New York, and Hawaii can push costs well above $400/sq ft for mid-range construction. These figures cover hard construction costs only — land, permits, design fees, and site work are additional. Costs have risen sharply since 2020 due to supply chain disruptions and persistent labor shortages, so always get current local contractor quotes rather than relying on national averages.