Answers the Question
What is the relative cost per unit of area?
Calculator for Price per Square Foot
What Is the Price per Square Foot?
The price of many items, from housing to sod to shingles, are often converted into square foots before being compared to similar alternatives.
Why Is it Important?
- By utilizing a standardized measure, products sold in different sizes or quantities, can be compared easily.
Formula(s) to Calculate Price per Square Foot
- PRICE PER SQUARE FOOT = AREA IN FEET / COST
- Assumes buyers only care about unit price and not quantity. In reality, many buyers only require small quantities of a given good.
- Does not consider sources of value that are not included in the measure. For instance, dollars per square foot measures do not include measures of land, quality of construction, or the aesthetics of landscaping.