Price per square foot (or price per square meter) is a common metric used in real estate to compare property values. It's calculated by dividing the total price of a property by its total area. This metric helps buyers, sellers, and investors understand property value relative to size, making it easier to compare different properties regardless of their total price or square footage.

For example, a 1,500 sq ft home selling for $300,000 has a price per square foot of $200. This metric is particularly useful when comparing properties in the same area or market, as it normalizes for size differences.

How to Calculate Price Per Square Foot

The formula is straightforward:

This calculator can work in three ways:

• Calculate Total Price: Enter price per sqft and area to find the total property value
• Calculate Area: Enter total price and price per sqft to find the property size
• Calculate Price/SqFt: Enter total price and area to find the price per square foot

Using Price Per Square Foot in Real Estate

Price per square foot is valuable for:

• Property Comparison: Compare similar properties to identify good value or overpriced listings
• Market Analysis: Understand average prices in a neighborhood or market area
• Pricing Strategy: Help sellers price their property competitively
• Investment Analysis: Evaluate rental properties and investment opportunities
• Construction Cost: Estimate building costs per square foot for new construction

Factors That Affect Price Per Square Foot

While price per square foot is useful, it's not the only factor to consider: