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Home / Glossary / Construction Cost per Square Foot
Glossary

How is construction cost per square foot calculated?

Construction cost per square foot is the total construction cost of a building divided by its built-up area in square feet. It is the quickest way to compare budgets, quotes and projects of different sizes.

Construction Cost per Square Foot explained

Cost per sq ft = total project cost ÷ built-up area (sq ft). A 2,000 sq ft house that costs ₹40 lakh to build works out to ₹2,000 per sq ft.

What goes into “total cost” matters: some quotes cover only the structure and basic finishes, others include interiors, electrical and plumbing fittings, approvals and GST. Compare like with like, and be clear whether the area is carpet, built-up or super built-up.

Rates vary widely with city, specification, labour availability and material prices, so a per sq ft rate is a planning figure; a BOQ gives the real budget.

How ARC PEM helps

ARC PEM calculates cost per sq ft for each project from its BOQ budget, and shows how actual spending compares as bills come in. See all features.

Free tool: Construction Cost Calculator — Estimate the cost of building a house in India — per sq ft rates by quality and city, with a full cost breakdown and material quantities.

Frequently asked questions

What is the difference between carpet, built-up and super built-up area?
Carpet area is the usable floor area inside the walls (RERA defines it precisely). Built-up area adds the thickness of the walls and usually balconies. Super built-up area adds a share of common areas such as lobbies, stairs and lifts.

Related terms

Where this fits in your workflow

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