To calculate the cost per square foot, you need two key pieces of information: the total cost of the item or property and its total square footage. The formula is quite simple:
Cost Per Square Foot = Total Cost ÷ Total Square Footage
For example, if you have a property that costs $300,000 and has an area of 2,000 square feet, you would divide 300,000 by 2,000. This results in a cost per square foot of $150.
This calculation is useful for comparing properties or materials of different sizes and total costs, allowing for an easier assessment of value. It is commonly used in real estate, construction, and various retail applications.