The quickest way to compare homes
Two listings at $400,000 and $520,000 are hard to compare until you know their size. Price per square foot puts them on the same scale and is the first number agents, appraisers and buyers look at. This calculator works it out and tells you how a home sits against the local average.
The formula
Price per square foot = price ÷ living area
Use the finished, above-grade living area that appears in the listing or the appraisal. Garages, unfinished basements and outdoor space are usually excluded, so compare homes measured the same way. If you work in metric, the calculator also shows price per square meter (1 m² = 10.7639 sq ft).
Worked example
A 2,000 sq ft house is listed at $450,000. Recent sales nearby averaged $210 per square foot.
- Price per square foot: 450,000 ÷ 2,000 = $225.
- In metric: about $2,422 per m².
- Compared with the local average: 225 ÷ 210 − 1 = +7.1%.
- At exactly the local average, the house would cost 210 × 2,000 = $420,000.
A 7% premium can be justified by a renovated kitchen, a larger lot or a better street. Above 10%, ask what you are paying for.
Why size changes the figure
| Living area | Price per sq ft at $450,000 | Versus $210 average |
|---|---|---|
| 1,200 sq ft | $375 | +78.6% |
| 1,600 sq ft | $281 | +33.9% |
| 2,000 sq ft | $225 | +7.1% |
| 2,500 sq ft | $180 | −14.3% |
| 3,000 sq ft | $150 | −28.6% |
Smaller homes nearly always cost more per square foot, because the land, kitchen and bathrooms cost roughly the same whatever the size. Compare a home with others of similar size, age and type.
Where to find the local average
- Recent sold prices, not asking prices, from your agent’s comparative market analysis.
- County records or listing sites that show sold history.
- The appraisal, if you are already under contract.
Limits of the metric
Price per square foot ignores lot size, condition, views, school district, HOA fees and layout. It is a screening tool: use it to shortlist homes and spot outliers, then judge each property on its merits. For rentals, compare rent per square foot the same way, and check the rental property calculator for cap rate and yield.