What is Cost Per Acre?

Cost Per Acre is a measurement that indicates the price of one acre of land. It’s calculated by dividing the total cost of a property by the number of acres it covers. This value helps buyers, sellers, and investors understand the price of land on a per-acre basis, making it easier to compare the value of different properties.

How to Calculate Cost Per Acre?

Formula for Cost Per Acre

The formula to calculate the cost per acre is:

$\text{Cost per Acre} = \frac{\text{Total Cost of Land}}{\text{Number of Acres}}$

Example Calculation

Suppose you have a piece of land that costs $200,000, and the land area is 50 acres. To find the cost per acre:

$\text{Cost per Acre} = \frac{200,000}{50}$

$\text{Cost per Acre} = 4,000$

So, the cost per acre is $4,000.