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Building Replacement Cost Calculator

Estimate a commercial building’s replacement cost from square footage and cost per sq ft, with debris removal, ordinance or law and inflation.

How the building replacement cost calculator works

Replacement cost is what it would cost to rebuild today — not market value. This calculator builds a planning estimate from area and construction cost, then adds the items that are often forgotten.

Formula

Replacement cost = Sq ft × Cost per sq ft × (1 + Quality) × (1 + Debris % + Ordinance %) × (1 + Inflation).

How to use it

1. Enter the building area and a local construction cost per sq ft.
2. Adjust for quality or complexity.
3. Add debris removal, ordinance or law and inflation.

Worked example

12,000 sq ft at $215 is $2.58M; with 5% debris, 10% code upgrades and 4% inflation the estimate is about $3.09M.

Frequently asked questions

Why isn’t market value the right limit?

Market value includes land and location; replacement cost is only the cost to rebuild the structure.

Where can I get cost per square foot?

From a commercial valuation tool, a local contractor or an appraisal for the occupancy and construction class.

Guides

• The Coinsurance Penalty: How Underinsurance Shrinks a Property Claim

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