Replacement Cost Calculator
Calculate replacement cost of property based on square footage, construction costs, land value, and depreciation. Free, fast, and private.
How it works
Replacement Cost = (Square Footage × Construction Cost per Sq Ft) + Land Value - Depreciation. Used for insurance valuations and cost approach appraisals.
Example
2,500 sq ft × $180/sq ft + $75,000 land - $25,000 depreciation = $500,000.
FAQ
What is replacement cost in real estate?
Replacement cost is the amount needed to rebuild a property with similar utility and function using current materials and construction standards at today's prices.
How do I determine construction cost per square foot?
Research local construction costs by property type. Typical ranges: basic homes $100-150/sq ft, mid-range $150-250/sq ft, high-end $250-400+/sq ft. Check with local builders for current rates.
Should depreciation be included in replacement cost?
Depends on purpose. For insurance, use replacement cost new. For appraisals, depreciation may be deducted to reflect actual condition and functional obsolescence.
How is replacement cost different from market value?
Replacement cost is construction-based, while market value reflects what buyers will pay. Market value considers location, demand, comparable sales - not just building costs.
What costs are excluded from replacement cost?
Land value is separate. Also excluded: original purchase price, financing costs, permits (sometimes), site preparation, and temporary living expenses during construction.