Replacement Cost Calculator

About this calculator

Replacement cost is what it would cost to rebuild a structure from scratch at today's construction prices — distinct from market value, which also reflects land price and depreciation. This calculator estimates it by multiplying a building's floor area by a base construction cost per square foot, then applying a quality or regional multiplier to account for finish level, local labor rates and material costs that vary significantly by location.

This figure is the backbone of homeowners and commercial property insurance: insurers use replacement cost, not market value, to set dwelling coverage limits, since a policy needs to cover the cost of rebuilding after a total loss regardless of what the land or the pre-loss home would have sold for. Real estate appraisers, insurance adjusters and property owners reviewing their coverage all use replacement-cost estimates like this one to check whether their current policy limit would actually be enough to rebuild.