The price per square foot is a metric used in the real estate industry to compare the cost efficiency of different properties. It is calculated by dividing the price of the property by its floor space in square feet.
To calculate the price per square foot, use the following formulas:
\[ \text{Price per square foot} = \frac{\text{Price}}{\text{Floor space (ft²)}} \]
\[ \text{Rent per square foot} = \frac{\text{Monthly Rent}}{\text{Floor space (ft²)}} \]
Assume you want to purchase a property for $300,000 and the floor space is 2,500 square feet. You can calculate the price per square foot as follows:
Step 1 – Determine the price per square foot:
\[ \text{Price per square foot} = \frac{300,000}{2,500} = 120 \]
So, the price per square foot is $120.
