Price per square foot normalizes property prices so you can compare homes of different sizes — price divided by living area. The staple metric for comps and listings.
The example
$450k home, 1,800 sqft.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Price | 450000 |
| 3 | Sq ft | 1800 → $250 |
The formula
The formula:
How it works
How it works:
- Divide price by finished square footage for a size-normalized comparison.
- Use it on comps — average the $/sqft of similar recent sales to estimate a subject property’s value.
- Flip it to estimate price:
value = sqft × market_price_per_sqft. - Be consistent about what counts as living area (finished, above-grade) so comparisons are fair.
Estimate a value fast: =AVERAGE(comp_$_per_sqft) * subject_sqft gives a quick appraisal from comparable sales. It works best when the comps are genuinely similar in age, condition, and location — $/sqft varies wildly across neighborhoods.
Try it: interactive demo
Price and square feet.
Variations
Value from $/sqft
Estimate price:
Average of comps
From recent sales:
Rent per sqft
For leasing:
Pitfalls & errors
Define living area. Decide whether basements and garages count — keep it consistent across comps.
Location dominates. $/sqft varies hugely by neighborhood; only compare nearby, similar homes.
Square feet can’t be zero. A missing area gives #DIV/0!.
Practice workbook
Frequently asked questions
How do I calculate price per square foot in Excel?
How do I estimate a home's value from price per square foot?
What area should I use?
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