Home Replacement Cost Calculator
Replacement cost is the price to rebuild your home with like kind and quality at today's prices, and it is the basis insurers use to set dwelling coverage. It is not market value (which includes land) and not actual cash value (which subtracts depreciation). This calculator multiplies your finished living area by a local construction cost per square foot, applies a quality multiplier for finishes and complexity, and then compares the result to your current coverage limit to reveal any gap. Every figure is a user-editable input you source locally, so nothing is fabricated.
Replacement cost formula
Replacement cost = living area * cost per sq ft * quality multiplier
Effective cost per sq ft = cost per sq ft * quality multiplier
Coverage gap = replacement cost - dwelling coverage
Coverage % = dwelling coverage / replacement cost * 100
A positive coverage gap signals possible underinsurance. The quality multiplier scales the base cost for higher-end finishes, complex rooflines, or custom features.
Rebuild cost context
- Replacement cost excludes land; market value includes it, so the two rarely match.
- Construction costs vary by region, materials, and labor; always use a local figure.
- Extended replacement cost endorsements pay a percentage above the dwelling limit after a major loss.
- FEMA guidance on rebuilding and flood risk can affect both cost and required coverage.
- Re-estimate after renovations or large swings in building material prices.
Replacement cost: frequently asked questions
What is replacement cost for a home?
Replacement cost is what it would cost to rebuild your home with materials of like kind and quality at today's prices. It is different from market value, which includes land, and from actual cash value, which subtracts depreciation. Insurers set dwelling coverage based on replacement cost, not the price you paid.
How is replacement cost estimated?
A common estimate multiplies the home's finished living area in square feet by a local construction cost per square foot, then applies a quality or features multiplier for finishes, roof type, and complexity. This calculator uses that method with your own square footage and local cost figures so nothing is guessed.
Where do I get the cost per square foot?
Construction cost per square foot varies widely by region, materials, and labor market. Use a local builder quote, a recent appraisal, or your insurer's replacement-cost estimator. Enter it as a user-editable input; there is no single national figure that applies to every home.
What is the coverage gap output?
The coverage gap is your estimated replacement cost minus your current dwelling coverage limit. A positive gap means you may be underinsured and could pay out of pocket after a total loss, especially if your policy lacks extended or guaranteed replacement cost. Review the gap with your agent.
Does this include land value?
No. Replacement cost covers rebuilding the structure only. Land is not destroyed in most losses, so insurers exclude it. That is why replacement cost can be lower or higher than the home's market price, which does include the lot.
Official sources
- National Association of Insurance Commissioners: NAIC homeowners insurance consumer information.
- FEMA: FEMA rebuilding and flood resources.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.