Faro Labs / Tools / Price per square foot calculator
Price per square foot calculator
The fastest way to compare one home to the block around it. Price over finished living area, measured against what comparable homes are getting per foot.
At $225 per foot, 1,850 finished feet would be worth about $416,250, $16,250 above the asking price.
How price per square foot works
Every appraiser, agent, and investor uses this number for the same reason: it strips away size so two houses of different footprints can be compared on the same axis. A $600,000 four-bedroom and a $400,000 two-bedroom tell you nothing side by side until you know one is $210 a foot and the other is $265.
Where it breaks
Price per square foot falls as homes get larger. A 3,500 ft² house almost never costs twice what a 1,750 ft² one does on the same street, because land, kitchens, and mechanicals don't double. It also ignores condition, lot size, garage, view, and layout entirely. Use it to rank similar homes in one neighborhood, then let the differences it can't see explain the gaps.
Measure the same way every time
The finished above-grade living area is the standard denominator. Unfinished basements and garages are excluded; finished basements are usually counted separately at a lower rate. Mixing conventions between the subject and the comps produces a difference that's purely an accounting artifact.
Price per square foot questions
How do you calculate price per square foot?
Divide the purchase price by the home's finished living area. A $400,000 home with 2,000 finished square feet is $200 per square foot. Do the same for each comparable sale, and the spread between them is the comparison worth having.
Does it include the basement or garage?
Usually not. The convention is finished above-grade living area, so garages and unfinished basements are excluded, and finished basements are often counted separately at a discount to above-grade space. Comparing a figure that includes them against one that doesn't is the most common way this metric misleads.
Is a lower price per square foot always better?
No. It ignores lot size, condition, age, layout, and location, and it naturally falls as homes get bigger. A cheap-per-foot house can be the worst buy on the street if it needs a roof and sits on a fraction of the land. It's a screen between similar homes in the same area, not a measure of value on its own.
Every calculator
Want the comps behind the number?
Faro pulls real nearby sales and rentals for an address and prices the property against them: no manual comp hunting.
Estimates for analysis and educational use only: not financial, investment, tax, or legal advice. Verify every number independently before making a purchase decision.