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Operating Cost Per Square Foot

Annual operating expenses divided by total square footage.

Example Result

Sample Data
$7.95

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Operating Cost Per Square Foot Formula

$11,924 / 1,500.00
$7.95

What This Means

A sample property priced at $385,000 with $2,850/month rent has a operating cost per square foot of $7.95 at Purchase (Month 0). This metric helps you identify if a property is expensive to operate relative to its size. Higher cost per square foot may indicate aging systems, poor insulation, or other issues that could be addressed to improve returns.

Where This Value Comes From

Operating Cost Per Square Foot is not entered directly — it is calculated from Square Footage and Total Operating Expenses. See the formula breakdown above and the detailed inputs below.

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Why It Matters

This metric helps you identify if a property is expensive to operate relative to its size. Higher cost per square foot may indicate aging systems, poor insulation, or other issues that could be addressed to improve returns.

Detailed Explanation

Operating Cost Per Square Foot normalizes expenses by property size, making it easy to compare operational costs across different property types and sizes.

Example

Sample Result
$6.42

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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