Replacement Cost Calculator

Formula

To calculate the Replacement Cost (RC):

\[ RC = HA \times CPSF \]

Where:

$ RC $ is the Replacement Cost ($)
$ HA $ is the total home area (ft²)
$ CPSF $ is the cost per square foot to rebuild ($/ft²)

Replacement Cost Definition

Replacement cost is the total cost to rebuild a home or property based on its current size and the cost per square foot to rebuild. This calculation helps in determining the amount of insurance coverage needed to fully replace a property in the event of a loss.

Example Calculation

Let's assume the following values:

Total Home Area $ HA $ = 2000 ft²
Cost Per Square Foot $ CPSF $ = $150/ft²

Step 1: Use the replacement cost formula:

\[ RC = HA \times CPSF = 2000 \times 150 = 300000 \]

The Replacement Cost is $300,000.