Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A per-square-foot comparison only means the same thing across two properties when both measure the identical thing by the identical definition, so comparing a finished-basement-included figure against one that excludes it, or comparing across meaningfully different condition and location, produces a number that looks precise while comparing two different things.
Before you rely on it
What to check
Confirm both properties in a comparison use the same finished-area definition and adjust explicitly for condition and location differences, rather than comparing the raw per-square-foot figures directly.
The common error
Where people go wrong with price per square foot calculator
Comparing two properties' price per square foot without confirming both use the identical finished-area definition. A figure that includes a finished basement in one property and excludes it in another isn't actually comparing like for like.
Sensitivity evidence
How property price changes the price per square foot
| Property price | Price per square foot | Difference from comparison | Implied value at comparison |
|---|---|---|---|
| $360,000 | $180 | -$60 | $480,000 |
| $405,000 | $203 | -$38 | $480,000 |
| $450,000worked example | $225 | -$15 | $480,000 |
| $495,000 | $248 | $7.50 | $480,000 |
| $540,000 | $270 | $30 | $480,000 |
Every input, tested
Which input moves the price per square foot most
| Input | Tested from | To | Price per square foot at each end | Swing |
|---|---|---|---|---|
| Finished square feet | 1,800 | 2,200 | $250 to $205 | $45 (20%) |
| Property price | $405,000 | $495,000 | $203 to $248 | $45 (20%) |
| Comparison price per square foot | $216 | $264 | $225 to $225 | none |
Two variables at once
Price per square foot by property price and finished square feet
| Property price \ Finished square feet | 1,600 | 2,000 | 2,400 |
|---|---|---|---|
| $360,000 | $225 | $180 | $150 |
| $405,000 | $253 | $203 | $169 |
| $450,000 | $281 | $225 | $188 |
| $495,000 | $309 | $248 | $206 |
| $540,000 | $338 | $270 | $225 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Property price | $450,000 |
| Finished square feet | 2,000 |
| Comparison price per square foot | $240 |
| Price per square foot | $225 |
| Difference from comparison | -$15 |
| Implied value at comparison | $480,000 |
Where the inputs come from
Property price is the sale or list price, and finished square feet is the living area measured consistently, such as by the same standard the appraisal uses. Do not count unfinished basements, garages or attics as finished area. The comparison price per square foot should come from recent sales of similar homes nearby, ideally within the last six months and in the same neighborhood. Square footage in listings is sometimes wrong, so verify it with county records.
When the result stops applying
Price per square foot ignores lot size, condition and quality, and treats all space as equal even though a kitchen is worth more than a spare room. Measurement standards differ, so the same house can show different sizes. Comparing across neighborhoods or property types is unreliable. Use it as one input alongside appraisals and comparable sales.
What to compare it with
See the payment for the price on the mortgage payment calculator, and the return for rentals on the cap rate and gross rent multiplier pages. The rental yield and land acreage calculators cover other property measures. The unit conversion pages convert square feet to square meters.
People also ask
Frequently asked questions
What is a normal price per square foot?
It varies enormously by city and neighborhood, from under $100 in some markets to over $1,000 in others, so compare only with nearby recent sales.
Does price per square foot include the basement?
Only if the basement is finished and counted as living area under local standards. Many appraisers count it at a lower rate or separately.
Why do small homes have a higher price per square foot?
Because fixed costs such as kitchens, baths and land are spread over less space, so each square foot costs more.