How to Calculate Price Per Square Foot
Price per square foot is the fastest way to sanity-check a property price — and the easiest number to compare unfairly. Here is how to get it right.
To calculate price per square foot, divide the total price by the total square footage. A 2,400 sq ft house listed at $360,000 is $360,000 ÷ 2,400 = $150 per square foot. To find a total from a rate, multiply instead: 2,400 × $150 = $360,000.
The formula
There is only one equation, used in two directions:
- Price per sq ft = Total price ÷ Square footage
- Total price = Price per sq ft × Square footage
The arithmetic is trivial. What makes the number unreliable is the denominator — what counts as square footage in the first place.
What square footage should you divide by?
Two listings can show wildly different rates for near-identical houses simply because one counted the finished basement and the other did not.
For residential property in the US, the convention follows the ANSI Z765 standard: finished, heated living area, measured to the outside of exterior walls.
Normally included
- Bedrooms, living rooms, kitchens, bathrooms
- Hallways, landings and built-in closets
- Finished basements at or above grade (though many markets list these separately)
- Stairs, counted on each floor they serve
Normally excluded
- Garages, whether attached or detached
- Unfinished basements, attics and crawl spaces
- Open porches, decks and patios
- Any space with a ceiling lower than 7 feet
If you are working from your own measurements rather than a listing, the room sqft calculator will total a whole house room by room. Our house square footage guide covers the measurement rules in more detail.
Worked examples
Buying a house. A 2,400 sq ft home is listed at $360,000. $360,000 ÷ 2,400 = $150 per square foot.
Comparing two homes. Home A is 1,800 sq ft at $342,000 ($190/sq ft). Home B is 2,600 sq ft at $455,000 ($175/sq ft). Home B looks better value per foot — but check whether the extra 800 sq ft is space you actually want, and whether Home A sits on a better lot.
Pricing a flooring job. 850 sq ft of engineered hardwood at $6.20 per square foot is 850 × $6.20 = $5,270 in materials, before waste and labour. Add 10% waste and it is closer to $5,800 — the flooring calculator handles this.
Commercial rent. A 2,000 sq ft office quoted at $32 per square foot per year is 2,000 × $32 = $64,000 a year, or $5,333 a month. See commercial lease square footage for what “rentable” means there.
Typical price per square foot
| Category | Typical range | Notes |
|---|---|---|
| US home purchase | $100 – $700 /sq ft | Varies enormously by metro |
| New home construction | $150 – $350 /sq ft | Excludes land |
| Laminate flooring | $3 – $7 /sq ft | Materials only |
| Hardwood flooring | $6 – $15 /sq ft | Materials only |
| Asphalt shingle roof | $4 – $8 /sq ft | Installed — see roof calculator |
| Interior painting | $2 – $6 /sq ft | Of wall area, not floor |
| Concrete patio | $8 – $18 /sq ft | Installed |
These are broad national ranges for orientation only. Local labour costs move all of them substantially.
Why smaller homes cost more per foot
This surprises people, but it is consistent and has a straightforward cause.
Kitchens and bathrooms are by far the most expensive rooms per square foot — plumbing, electrical, cabinetry, appliances, tile. Every house needs at least one of each regardless of its size.
In a 1,200 sq ft home those rooms might be 25% of the floor plan. In a 3,600 sq ft home they might be 10%. The remaining space in the larger house is mostly inexpensive bedroom and living area, which pulls the average down.
The practical consequence: never compare price per square foot between homes of very different sizes. It will always make the larger one look like better value, whether or not it is.
What price per square foot misses
It is a screening tool. Treated as a valuation, it is actively misleading, because it takes no account of:
- Lot size and quality — two identical houses, one on a quarter acre with a view
- Condition and age — a renovated kitchen versus one from 1985
- Layout — 2,000 sq ft in a good floor plan beats 2,200 sq ft in a bad one
- Location within a neighbourhood — the quiet street versus the arterial road
- Finish quality — the same square footage in laminate or in stone
Use it to find the homes worth looking at more closely, then evaluate those on their merits.
Do it automatically
The price per sqft calculator solves in whichever direction you need — enter any two of area, rate and total, and it fills in the third, including monthly and annual figures for lease comparisons.
Frequently asked questions
How do you calculate price per sqft?
Divide the total price by the total square footage. A $360,000 home with 2,400 square feet works out at $150 per square foot.
What square footage do I divide by?
For residential property, use the finished heated living area. That excludes garages, unfinished basements, attics and open porches. For a commercial lease, use the rentable square footage, which includes a share of shared spaces.
Why is price per square foot higher on smaller homes?
Kitchens and bathrooms cost the most to build and every home needs them. In a smaller home they take up a larger proportion of the floor plan, which raises the average cost per square foot.
Is price per square foot a reliable way to value a home?
It is a useful screening tool, not a valuation. It ignores lot size, condition, age, layout, view and location quality. Use it to compare similar homes in the same neighbourhood, then look at the differences.
How is price per square foot calculated for a rental?
Residential rentals divide the monthly rent by the square footage. Commercial leases are usually quoted per square foot per year, so multiply the rate by the rentable area and divide by 12 for a monthly figure.