How the Price Per Square Foot Calculator works
Price per square foot is the most common way to compare properties of different sizes on an equal footing. It answers a simple question: for every square foot of space, how much is a buyer paying (or a seller asking)? The calculator uses the standard formula and then, if you supply a market average rate, tells you whether the property is priced above or below that comparable rate.
The formula
For a property price P and total square footage S, price per square foot is:
Price per Sq Ft = P ÷ S
If you also enter a market average rate M (the typical price per square foot for comparable properties), the calculator estimates a comparable market value as M × S, then reports the dollar and percentage difference between the actual property price and that estimate.
Worked example
A home listed at $350,000 with 1,800 square feet of finished living area has a price per square foot of $350,000 ÷ 1,800 = $194.44. If comparable homes in the area are selling for a market average of $200 per square foot, the estimated market value for a 1,800-square-foot home is $200 × 1,800 = $360,000. The listing is therefore about $10,000 (roughly 2.8%) below that estimate — a mild sign the price is in line with, or slightly favorable relative to, the local market.
What moves price per square foot
- Property price: a higher asking or sale price raises price per square foot directly, holding size constant.
- Square footage: two homes at the same price will show very different rates if one is 1,200 square feet and the other is 2,400 — the smaller home carries a much higher price per square foot.
- Location and condition: the calculator does not know about neighborhood, finish quality, or lot size — that is exactly what the market-average comparison is meant to approximate. Feeding in a market rate drawn from truly comparable properties makes the comparison more meaningful.
What "square footage" should include
Most residential listings measure price per square foot using above-grade finished living area, following a standard such as ANSI Z765, and exclude garages, unfinished basements, porches, and land. Commercial listings and raw land sometimes divide by lot square footage instead. The specific convention matters less than consistency: comparing a price-per-square-foot figure based on finished living area against one based on total building footprint will produce a misleading gap that has nothing to do with actual value.