Replacement Cost Calculator Formula

Understand the math behind the replacement cost calculator. Each variable explained with a worked example.

Use the Replacement Cost Calculator

Formulas Used

Total Replacement Cost

total_replacement_cost = building_cost + site_improvements

Building Cost Only

building_only_cost = building_cost

Site Improvements Cost

site_cost = site_improvements

Variables

VariableDescriptionDefault
building_sqftBuilding Square Footage(sq ft)2200
cost_per_sqftConstruction Cost Per Sq Ft(USD)175
site_improvementsSite Improvements(USD)25000
building_costDerived value= building_sqft * cost_per_sqftcalculated

How It Works

Replacement Cost Estimation

Replacement cost is the expense of constructing a functionally equivalent building using current materials and methods.

Formula

Replacement Cost = (Building Sq Ft x Cost Per Sq Ft) + Site Improvements

Included Costs

  • Building construction (per square foot)
  • Site improvements (driveways, landscaping, utilities, fencing)
  • Does not include land value, which must be added separately for the cost approach to value

    • Worked Example

    Rebuilding a 2,200 sq ft home at $175/sq ft with $25,000 in site improvements.

    building_sqft = 2200cost_per_sqft = 175site_improvements = 25000
    1. 01Building cost: 2,200 x $175 = $385,000
    2. 02Site improvements: $25,000
    3. 03Total replacement cost: $385,000 + $25,000 = $410,000

    Ready to run the numbers?

    Open Replacement Cost Calculator