1. What is the PSM Formula?

The PSM (Purchase to Square Meter) formula calculates the price per square meter from the total cost and area. It's commonly used in real estate and construction to compare property values and material costs.

2. How Does the Calculator Work?

The calculator uses the PSM formula:

Where:

• \( PSM \) — Price per square meter (currency/m²)
• \( TC \) — Total cost (currency)
• \( A \) — Area (m²)

Explanation: The formula divides the total cost by the area to determine the cost per square meter, providing a standardized metric for comparison.

3. Importance of PSM Calculation

Details: Calculating price per square meter is essential for comparing property values, evaluating construction costs, budgeting for materials, and making informed purchasing decisions in real estate and construction projects.

4. Using the Calculator

Tips: Enter total cost in your local currency and area in square meters. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: Why calculate price per square meter?
A: It provides a standardized way to compare properties or materials of different sizes, helping you identify the best value for money.

Q2: What is a good price per square meter?
A: This varies significantly by location, property type, and market conditions. Research local market rates for comparable properties.

Q3: Can I use this for rental properties?
A: Yes, the same formula can be used to calculate rental cost per square meter for comparing rental properties.

Q4: Does this account for property features?
A: No, PSM is a basic calculation that doesn't account for property condition, location, amenities, or other factors that affect value.

Q5: Should I use this for renovation projects?
A: Yes, calculating cost per square meter is useful for budgeting renovation materials and comparing contractor quotes.