Skip to main content
Calcimator

Cost Approach Valuation Calculator

Value property using the cost approach: Land Value + (Replacement Cost New - Depreciation).

Inputs

$
sq ft
$/sq ft
years
years
%
%

Results

Property Value

$433,333.00

≈ 10 Teslas

Replacement Cost New$500,000.00
Total Depreciation$166,667.00
Depreciation %33%
Building Value$333,333.00
Land Value$100,000.00
Remaining Economic Life40years
Land-to-Value Ratio23%
How to Use This Calculator
  1. Enter Land Value from comparable vacant land sales.
  2. Set Building Area in square feet and Replacement Cost per SF (cost to build new today).
  3. Enter Building Age and Economic Life in years for the straight-line depreciation calculation.
  4. Set Functional Obsolescence % for outdated features (e.g. obsolete floor plan) and External Obsolescence % for market factors.
  5. Review Property Value — land value plus depreciated cost of improvements.
  6. Cost approach is most reliable for new construction and special-use properties; use in conjunction with sales and income approaches.

How the result changes with Building Area

Building AreaProperty Value
50,090$6,778,667.00
175,065$23,442,000.00
325,035$43,438,000.00
450,010$60,101,333.00

What each input means

Land Value
Estimated land value from comparable sales.
Building Area
Total building square footage.
Replacement Cost/Sq Ft
Cost to build new per square foot.
Building Age
Effective age of the building.
Economic Life
Total expected useful life of the building.
Functional Obsolescence
Loss from outdated design or features.
External Obsolescence
Loss from external factors (location, market).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Land Value = 100000, Building Area = 2500, Replacement Cost/Sq Ft = 200, Building Age = 20 = 7 input(s) provided
  2. Calculate Property Value
    Property Value = landValue + depreciatedBuildingValue
    433333 = $433,333
  3. Calculate Replacement Cost New
    Replacement Cost New = buildingSqft * costPerSqft
    500000 = $500,000
  4. Calculate Total Depreciation
    Total Depreciation = physicalDepreciation + functionalDep + externalDep
    166667 = $166,667

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators.

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

Appraisal

Personal Property Appraisal Calculator

Estimate personal property value for insurance, estate, donation, or resale purposes based on age, condition, and rarity.

Appraisal

Income Approach Valuation Calculator

Value income-producing property using the capitalization rate method (NOI / Cap Rate = Value).

Appraisal

Real Estate Appraisal Calculator

Estimate property value using the sales comparison approach with comparable sales, price per square foot, and condition adjustments.

Commercial Real Estate

Commercial Property Valuation Calculator

Estimate commercial property value using the income capitalization approach (NOI / Cap Rate).

Classic Cars

Classic Car Value Calculator

Value from make, model, year, condition, and provenance.

More in Real Estate & Property.