QUICK ANSWER
Texas real estate math is not about advanced math. It is about recognizing the setup, choosing the right formula, converting cleanly, and avoiding trap wording. Pearson VUE's current sales outline lists Real Estate Math Calculations as 7 scored National/General items, all application or analysis. The topics include area, acreage, valuation, NOI, cap rate, commission, loan costs, LTV, settlement costs, prorations, transfer tax and recording fees, ROI, appreciation, depreciation, and property-management calculations.
Start Here
Real estate math scares more Texas exam candidates than it should.
Not because the math is advanced. It is not.
Most Texas real estate exam math is percentage, multiplication, division, unit conversion, and careful reading. The hard part is knowing what the question is really asking.
That is why this guide is built differently from a normal formula list. You will get:
- The exact math categories Pearson lists for the sales exam.
- A formula sheet you can study.
- Worked examples with plain-English setup.
- A practice set with answers.
- Links to every math subtopic page in the Texas content plan.
- The traps that make simple problems feel harder than they are.
The goal is not to make you love math. The goal is to make math boring enough that it stops costing you points.
Table Of Contents
- What math is on the Texas real estate exam?
- The two numbers Pearson says to memorize
- Calculator rules you need to know
- The exam math framework
- Texas real estate math formula sheet
- Worked examples
- Practice set
- Answer key and explanations
- Math subtopic hub
- How to recognize the problem type
- Exam-day strategy for math questions
- Common mistakes
- How to study real estate math in 7 days
- FAQ
What Math Is On The Texas Real Estate Exam?
For Texas sales candidates, Pearson's content outline places Real Estate Math Calculations in the National/General portion of the exam. The outline lists 7 scored sales math items, with 4 application items and 3 analysis items.
That wording matters.
Application and analysis means the exam is not usually asking, "Do you remember a formula name?" It is asking whether you can use the formula inside a fact pattern.
Pearson's current sales outline lists these math categories:
| Pearson math category | What it can include |
|---|---|
| Property area calculations | Square footage and acreage total |
| Property valuation | CMA, NOI, capitalization rate, equity, listing price, assessed value, property taxes |
| Commission and compensation | Commission, splits, compensation math |
| Loan financing costs | Interest, LTV, fees, amortization, discount points, prepayment penalties |
| Settlement and closing costs | Purchase price, down payment, PITI, net to seller, cost to buyer, prorations, debits and credits, transfer tax, recording fee |
| Investment | ROI, appreciation, depreciation, investment tax implications |
| Property management calculations | Budgets, operating calculations, tenancy and rental calculations |
The state law portion does not list a separate Real Estate Math Calculations section. That does not mean you should ignore arithmetic when studying Texas law. It means the official math bucket is in the National/General outline, while Texas-specific fact patterns still require careful reading, dates, amounts, and document logic.
The Two Numbers Pearson Says To Memorize
Pearson's math notes say the following information is not available at the test center and should be memorized:
| Conversion | Memorize |
|---|---|
| Square feet per acre | 43,560 |
| Feet per mile | 5,280 |
Do not expect the test center to provide these. Learn them cold.
Also know Pearson's proration note: if a question requires prorated amounts, the question will specify whether to use a 360-day or 365-day year and whether the day of closing belongs to the buyer or seller.
That means proration is not about guessing the convention. It is about reading the instruction and applying it exactly.
Calculator Rules You Need To Know
Pearson says calculators are not required, but they are recommended. The handbook says acceptable calculators include hand-held, battery-powered, or solar-powered financial calculators used in real estate, finance, accounting, and business.
The calculator may have storage capabilities, but it must not contain alpha characters. Pearson explains that alpha characters are ABC and DEF style phone-keypad letters. Math symbols like cos or sin are exceptions.
Pearson also says calculators are not provided by test center staff, and calculator malfunctions are not grounds for challenging exam results or requesting additional time.
Practical takeaway:
- Bring an allowed calculator.
- Practice with that calculator before exam day.
- Do not rely on a phone.
- Do not bring a calculator with alphabet letters.
- Know how to clear memory if asked.
- Check the batteries.
The wrong calculator can create stress before you even see the first math question.
The Exam Math Framework
Before formulas, learn the process.
Most candidates miss math questions because they rush the setup. They see numbers and start calculating before they know the target.
Use this five-step method:
| Step | Question to ask |
|---|---|
| 1. Identify the target | What is the question asking me to find? |
| 2. Label the numbers | Which number is price, loan, rate, time, area, income, or expense? |
| 3. Convert first | Do I need percent to decimal, acres to square feet, annual to daily, or points to percent? |
| 4. Use the formula | Which relationship matches the target? |
| 5. Sanity check | Is the answer too large, too small, or in the wrong unit? |
This is slower at first and faster later.
The setup is the skill.
Texas Real Estate Math Formula Sheet
Use this as your core formula sheet. The goal is not to memorize a hundred formulas. The goal is to learn the relationships.
The Three Relationship Triangles
If formulas feel like too much to memorize, learn the three relationship groups first.
| Relationship | Use it for | Core idea |
|---|---|---|
| Part, whole, rate | Commission, tax, LTV, down payment, discounts, appreciation | Two numbers create the third |
| Income, rate, value | NOI, cap rate, value | Value moves opposite the rate |
| Units and time | Acres, square feet, miles, proration, monthly vs annual | Convert before calculating |
Most real estate math problems are a version of one of those three.
The exam may dress the problem in a story about a sale, lease, loan, tax bill, rental property, or closing statement. Your job is to strip away the story and find the relationship.
Ask:
- Is this a percent of a whole?
- Is this income, rate, and value?
- Is this a conversion problem?
- Is this a timing problem?
- Is this a buyer/seller accounting problem?
Once you know that, the arithmetic becomes much less dramatic.
Percent, Part, And Whole
| Need | Formula |
|---|---|
| Percent | Part / whole |
| Part | Whole x percent |
| Whole | Part / percent |
Convert percentages to decimals before calculating.
| Percent | Decimal |
|---|---|
| 6% | 0.06 |
| 3% | 0.03 |
| 2.5% | 0.025 |
| 0.75% | 0.0075 |
If you struggle with percent problems, the T-bar or circle method helps because it keeps part, whole, and rate in the right place.
Related page: The T-bar / circle method explained
Area And Acreage
| Need | Formula |
|---|---|
| Rectangle area | Length x width |
| Square feet from acres | Acres x 43,560 |
| Acres from square feet | Square feet / 43,560 |
| Feet from miles | Miles x 5,280 |
Related page: Area, acreage, and square-footage problems
Commission And Splits
| Need | Formula |
|---|---|
| Total commission | Sale price x commission rate |
| Side commission | Total commission x side split |
| Agent gross | Side commission x agent split |
| Broker share | Side commission x broker split |
| Referral fee | Commission amount x referral rate |
Always ask: "What number is the question using as the base?"
Related page: Commission and split calculations
Loan, LTV, Down Payment, And Points
| Need | Formula |
|---|---|
| LTV | Loan amount / property value |
| Loan amount | Value x LTV |
| Down payment | Purchase price - loan amount |
| Down payment percent | Down payment / purchase price |
| Discount points | Loan amount x points percent |
| 1 point | 1% of loan amount |
| Simple interest | Principal x rate x time |
Related page: Loan-to-value, down payment, and points
Property Taxes And Mill Rates
| Need | Formula |
|---|---|
| Property tax | Assessed value x tax rate |
| Tax rate from tax and value | Tax / assessed value |
| Mill tax | Assessed value x mills / 1,000 |
Texas property tax questions often require careful attention to assessed value, exemptions, local rates, and prorations. If a question uses mills, treat it as a national math concept and convert mills to dollars per $1,000 of value.
Related page: Property tax and mill-rate calculations
Proration
| Need | Formula |
|---|---|
| Daily rate | Annual amount / 360 or 365 |
| Prorated amount | Daily rate x number of days |
| Monthly rent daily rate | Monthly rent / days in month, if stated |
Pearson says the question will specify whether to use 360 or 365 days and whether the closing day belongs to the buyer or seller.
Related page: Proration: taxes, insurance, and rent at closing
Settlement And Net Problems
| Need | Formula |
|---|---|
| Buyer cash needed | Down payment + buyer closing costs + prepaid items, if stated |
| Seller net | Sale price - seller debits - loan payoff - commission, if stated |
| Debit | Amount charged to a party |
| Credit | Amount given to a party |
Settlement problems are not one formula. They are accounting problems. Label buyer and seller first.
Related page: Recording fees, transfer-tax math, and Texas caveats
NOI, Cap Rate, Value, And GRM
| Need | Formula |
|---|---|
| NOI | Gross income - vacancy - operating expenses |
| Cap rate | NOI / value |
| Value | NOI / cap rate |
| NOI from value and cap rate | Value x cap rate |
| GRM | Price / gross rent |
| Price by GRM | Gross rent x GRM |
Do not subtract debt service when calculating NOI unless the question specifically asks for cash flow or a different metric. NOI is before mortgage payments.
Related page: ROI, cap rate, GRM, and NOI
ROI, Appreciation, And Depreciation
| Need | Formula |
|---|---|
| ROI | Gain / investment |
| Gain | Ending value - beginning value |
| Appreciation amount | Original value x appreciation rate |
| New value | Original value + appreciation amount |
| Depreciation amount | Cost basis x depreciation rate, or cost basis / useful life if stated |
Related page: Appreciation, depreciation, and basis
PITI And Payment Components
| Need | Formula |
|---|---|
| PITI | Principal + interest + taxes + insurance |
| Monthly taxes | Annual taxes / 12 |
| Monthly insurance | Annual insurance / 12 |
If a question gives principal and interest as one payment, do not recalculate it unless asked.
Related page: Measurement conversions and PITI you must memorize
Property Management Math
| Need | Formula |
|---|---|
| Effective gross income | Potential gross income - vacancy loss + other income |
| Operating income | Income after vacancy, before expenses |
| NOI | Effective gross income - operating expenses |
| Rent per square foot | Rent / square feet |
| Occupancy rate | Occupied units / total units |
| Vacancy rate | Vacant units / total units |
Related page: Property-management math and operating budgets
Worked Examples
The examples below are original educational practice, not copied exam questions.
Example 1: Acreage
A rectangular parcel is 330 feet by 660 feet. How many acres is it?
Step 1: Find square feet.
330 x 660 = 217,800 square feet
Step 2: Convert square feet to acres.
217,800 / 43,560 = 5 acres
Answer: 5 acres.
Why candidates miss it: they multiply correctly, then forget to divide by 43,560.
Example 2: Commission
A property sells for $420,000. The total commission is 6%. The listing side receives half, and the listing agent gets 70% of the listing-side commission. What is the listing agent's gross commission?
Step 1: Total commission.
$420,000 x 0.06 = $25,200
Step 2: Listing side.
$25,200 x 0.50 = $12,600
Step 3: Agent share.
$12,600 x 0.70 = $8,820
Answer: $8,820.
Why candidates miss it: they multiply the agent split by the full commission instead of the listing-side commission.
Example 3: LTV And Down Payment
A buyer purchases a home for $350,000 and obtains an 80% loan. What is the loan amount and down payment?
Loan amount:
$350,000 x 0.80 = $280,000
Down payment:
$350,000 - $280,000 = $70,000
Answer: loan amount $280,000, down payment $70,000.
Why candidates miss it: they calculate the down payment as 80% instead of recognizing 80% is the loan.
Example 4: Discount Points
A borrower obtains a $240,000 loan and pays 2 discount points. How much are the points?
1 point = 1% of the loan amount.
2 points = 2% = 0.02
$240,000 x 0.02 = $4,800
Answer: $4,800.
Why candidates miss it: points are based on the loan amount, not the purchase price.
Example 5: Simple Interest
A $12,000 note has a 7% annual interest rate for 6 months. What is the interest?
Use principal x rate x time.
Time is 6 months, or 0.5 year.
$12,000 x 0.07 x 0.5 = $420
Answer: $420.
Why candidates miss it: they use a full year even though the note is for 6 months.
Example 6: Tax Proration
Annual property taxes are $5,475. The problem says use a 365-day year. The seller owns the property for 120 days. What is the seller's tax proration?
Daily tax:
$5,475 / 365 = $15 per day
Seller share:
$15 x 120 = $1,800
Answer: $1,800.
Why candidates miss it: they use 360 days when the question says 365.
Example 7: Cap Rate
A property has annual gross income of $96,000 and operating expenses of $36,000. It sells for $750,000. What is the capitalization rate?
NOI:
$96,000 - $36,000 = $60,000
Cap rate:
$60,000 / $750,000 = 0.08
Answer: 8%.
Why candidates miss it: they use gross income instead of NOI.
Example 8: Value From NOI And Cap Rate
A property has NOI of $72,000. Similar properties are selling at an 8% cap rate. What is the indicated value?
Value = NOI / cap rate
$72,000 / 0.08 = $900,000
Answer: $900,000.
Why candidates miss it: they multiply NOI by cap rate instead of dividing.
Example 9: GRM
A duplex sells for $360,000 and produces $3,000 per month in gross rent. What is the monthly GRM?
GRM = price / gross rent
$360,000 / $3,000 = 120
Answer: 120.
Why candidates miss it: they mix monthly rent with annual rent. If the question uses monthly GRM, use monthly rent. If it uses annual GRM, use annual rent.
Example 10: Seller Net
A seller sells for $500,000. The seller pays a 6% commission, $4,000 in other closing costs, and has a $310,000 loan payoff. What is the seller's net before any prorations?
Commission:
$500,000 x 0.06 = $30,000
Seller net:
$500,000 - $30,000 - $4,000 - $310,000 = $156,000
Answer: $156,000.
Why candidates miss it: they forget loan payoff is a seller debit in a net-to-seller problem.
PRACTICE THE FORMULA, NOT JUST THE FLASHCARD
Real estate math sticks after reps.
Use the Texas real estate exam prep app to practice commission, area, LTV, proration, cap rate, NOI, and settlement math with step-by-step explanations. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.
Practice Set
Try these without looking at the answer key first. They are original practice questions for study.
1. Acreage
A parcel contains 87,120 square feet. How many acres is it?
2. Rectangle Area
A lot is 150 feet wide and 200 feet deep. What is the square footage?
3. Commission
A property sells for $600,000. The total commission is 5%. The buyer side receives 50% of the commission, and the buyer's agent receives 80% of that side. What is the buyer's agent gross commission?
4. Referral Fee
An agent earns a $9,000 commission and owes a 25% referral fee. What is the referral fee?
5. LTV
A property is valued at $400,000 and the loan amount is $300,000. What is the LTV?
6. Down Payment
A buyer purchases a property for $275,000 with a 90% loan. What is the down payment?
7. Points
A borrower pays 1.5 points on a $320,000 loan. How much are the points?
8. Simple Interest
A $20,000 note has 6% annual interest for 9 months. What is the interest?
9. Property Tax
A property has an assessed value of $250,000 and a tax rate of 2.2%. What is the annual tax?
10. Mill Rate
A property is assessed at $180,000. The tax rate is 25 mills. What is the annual tax?
11. Proration
Annual taxes are $3,600. The question says to use a 360-day year. The seller owns the property for 75 days. What is the seller's share?
12. Cap Rate
A property has gross income of $120,000 and operating expenses of $45,000. It sells for $1,250,000. What is the cap rate?
13. Value From Cap Rate
A property has NOI of $50,000 and the market cap rate is 5%. What is the indicated value?
14. GRM
A property sells for $480,000 and has monthly gross rent of $4,000. What is the monthly GRM?
15. Vacancy Rate
An apartment building has 80 units, and 6 are vacant. What is the vacancy rate?
Answer Key And Explanations
1. Acreage
87,120 / 43,560 = 2 acres.
Answer: 2 acres.
2. Rectangle Area
150 x 200 = 30,000 square feet.
Answer: 30,000 square feet.
3. Commission
Total commission:
$600,000 x 0.05 = $30,000
Buyer side:
$30,000 x 0.50 = $15,000
Buyer agent:
$15,000 x 0.80 = $12,000
Answer: $12,000.
4. Referral Fee
$9,000 x 0.25 = $2,250.
Answer: $2,250.
5. LTV
$300,000 / $400,000 = 0.75.
Answer: 75%.
6. Down Payment
Loan amount:
$275,000 x 0.90 = $247,500
Down payment:
$275,000 - $247,500 = $27,500
Answer: $27,500.
7. Points
1.5 points = 1.5% = 0.015.
$320,000 x 0.015 = $4,800.
Answer: $4,800.
8. Simple Interest
9 months = 0.75 year.
$20,000 x 0.06 x 0.75 = $900.
Answer: $900.
9. Property Tax
$250,000 x 0.022 = $5,500.
Answer: $5,500.
10. Mill Rate
25 mills = $25 per $1,000 of assessed value.
$180,000 / 1,000 = 180
180 x $25 = $4,500
Answer: $4,500.
11. Proration
Daily tax:
$3,600 / 360 = $10 per day
Seller share:
$10 x 75 = $750
Answer: $750.
12. Cap Rate
NOI:
$120,000 - $45,000 = $75,000
Cap rate:
$75,000 / $1,250,000 = 0.06
Answer: 6%.
13. Value From Cap Rate
$50,000 / 0.05 = $1,000,000.
Answer: $1,000,000.
14. GRM
$480,000 / $4,000 = 120.
Answer: 120.
15. Vacancy Rate
6 / 80 = 0.075.
Answer: 7.5%.
Math Subtopic Hub
This pillar should become your map. Use the detailed pages when a formula needs more practice.
| Subtopic | Best for | Link |
|---|---|---|
| T-bar and circle method | Percent, part, whole, commission, tax, rate problems | The T-bar / circle method explained |
| Commission and split calculations | Gross commission, broker split, referral fee, net to agent | Commission and split calculations |
| Area and acreage | Square feet, acres, rectangular lots, conversion traps | Area, acreage, and square-footage problems |
| Property tax and mill rates | Assessed value, tax rates, exemptions, proration setup | Property tax and mill-rate calculations |
| LTV and points | Loan amount, down payment, LTV, CLTV, discount points | Loan-to-value, down payment, and points |
| Proration | Taxes, insurance, rent, 360-day and 365-day years | Proration: taxes, insurance, and rent at closing |
| Recording fees and transfer tax | National transfer-tax math and Texas caveats | Recording fees, transfer-tax math, and Texas caveats |
| Appreciation and depreciation | Growth, loss, basis, tax-related vocabulary | Appreciation, depreciation, and basis |
| ROI, cap rate, GRM, and NOI | Income approach, investor math, valuation logic | ROI, cap rate, GRM, and NOI |
| Measurement conversions and PITI | 43,560, 5,280, monthly taxes, insurance, PITI | Measurement conversions and PITI you must memorize |
| Property-management math | Budgets, vacancy, occupancy, rental calculations | Property-management math and operating budgets |
How To Recognize The Problem Type
The fastest test takers are not doing magical math. They recognize the setup quickly.
Use the clue words.
| If the question says | It may be testing | First move |
|---|---|---|
| "How many acres" | Area conversion | Find square feet, then divide by 43,560 |
| "How many square feet" | Area | Multiply length x width, or convert acres x 43,560 |
| "Commission" | Percent of sale price | Sale price x rate |
| "Broker split" or "agent share" | Commission split | Find the commission bucket first |
| "Loan-to-value" or "LTV" | Loan percent | Loan amount / value |
| "Down payment" | Purchase price minus loan | Calculate loan first if needed |
| "Points" | Loan fee | Loan amount x points percent |
| "Annual interest" | Simple interest | Principal x rate x time |
| "Prorated" | Time allocation | Daily rate x number of days |
| "Net to seller" | Settlement math | Sale price minus seller debits |
| "Cost to buyer" | Settlement math | Down payment plus buyer debits |
| "NOI" | Income property | Income minus vacancy and operating expenses |
| "Cap rate" | Income approach | NOI / value |
| "Indicated value" with cap rate | Income approach | NOI / cap rate |
| "GRM" | Rent multiplier | Price / gross rent |
| "Vacancy" | Property management | Vacant units / total units |
This is why mixed practice matters. If you do 20 commission questions in a row, you learn commission. If you do mixed questions, you learn recognition.
The "Base Number" Test
When a question uses a percentage, pause and ask, "Percent of what?"
That one question prevents a lot of errors.
| Formula type | The usual base |
|---|---|
| Commission | Sale price |
| Discount points | Loan amount |
| LTV | Property value or purchase price, depending on wording |
| Down payment percent | Purchase price |
| Tax rate | Assessed value |
| Cap rate | Property value |
| ROI | Investment amount |
| Vacancy rate | Total units |
If the answer choices are close together, the exam may be testing whether you used the right base.
The "Unit" Test
Before calculating, circle or mentally label units:
- Dollars.
- Percent.
- Feet.
- Square feet.
- Acres.
- Months.
- Years.
- Units.
- Rent per month.
- Rent per year.
Then ask whether the final answer should be dollars, percent, acres, square feet, months, or units.
If your answer is in the wrong unit, it is wrong even if the arithmetic was clean.
Exam-Day Strategy For Math Questions
Math questions can burn time if you let them. Use a calm system.
1. Read the last sentence first
The last sentence usually tells you the target.
Example:
"What is the buyer's down payment?" is different from "What is the loan amount?"
"What is the total commission?" is different from "What is the agent's share?"
2. Write the target in one word
On your scratch paper, write a tiny label:
- Acres.
- LTV.
- Points.
- NOI.
- Cap.
- Seller net.
- Daily.
This keeps your brain from wandering into the wrong formula.
3. Convert before you calculate
Do conversions first:
- 6% becomes 0.06.
- 2 points becomes 0.02.
- 9 months becomes 0.75 year.
- 2 acres becomes 87,120 square feet.
- Annual taxes become daily taxes if prorating.
Bad conversions create bad answers.
4. Estimate before choosing
You do not need a perfect mental calculation. You need a sanity range.
If a $300,000 property has a 10% down payment, the answer should be around $30,000, not $3,000 or $300,000.
If NOI is $60,000 and value is $1,000,000, the cap rate should be a normal-looking percentage, not 60%.
5. Skip sticky questions once
If you cannot identify the target within a reasonable time, mark it and move on. A math question that eats five minutes can cost you easier points elsewhere.
Come back with a calmer brain.
6. Review the question, not just your arithmetic
When checking work, do not only recalculate. Reread the wording.
Look for:
- Annual vs monthly.
- Buyer vs seller.
- Loan amount vs purchase price.
- Gross income vs NOI.
- 360 days vs 365 days.
- Closing day belongs to buyer or seller.
- Total commission vs one side of the commission.
Most wrong math answers come from setup errors, not calculator errors.
Common Mistakes
Mistake 1: Calculating before reading the last sentence
The last sentence usually tells you the target.
Example:
- "What is the total commission?"
- "What is the listing agent's share?"
- "What is the buyer's down payment?"
- "What is the seller's net?"
Those are different targets. The same numbers can lead to different answers.
Mistake 2: Using the wrong base number
Percent questions are base-number questions.
Examples:
- Points are usually based on the loan amount.
- Commission is based on the sale price unless stated otherwise.
- Tax is based on assessed value, not always market value.
- Down payment is based on purchase price.
- Cap rate is based on value and NOI.
If you pick the wrong base, the formula can be perfect and the answer still wrong.
Mistake 3: Forgetting to convert percent to decimal
6% is 0.06, not 6.
2.5% is 0.025, not 2.5.
0.5% is 0.005, not 0.05.
This one error can turn a simple calculation into nonsense.
Mistake 4: Mixing monthly and annual numbers
This is common in rent, GRM, PITI, insurance, taxes, and operating statements.
If rent is monthly and expenses are annual, convert before calculating.
If the question asks for monthly GRM, use monthly rent. If it asks for annual GRM, use annual rent.
Mistake 5: Treating NOI like cash flow
NOI is income minus operating expenses. It is before mortgage debt service.
If the question asks for cash flow after debt service, then debt service matters. If it asks for NOI, do not subtract the loan payment unless the problem tells you to use a different metric.
Mistake 6: Memorizing formulas without doing reps
Looking at a formula sheet feels productive. It is not enough.
Math confidence comes from repetition:
- Read the prompt.
- Label the target.
- Write the formula.
- Calculate.
- Check the answer.
- Review why wrong answers are tempting.
That is how simple arithmetic becomes exam-ready.
How To Study Real Estate Math In 7 Days
If math is your weakest area, use this plan.
| Day | Focus | What to practice |
|---|---|---|
| 1 | Percent basics | Part, whole, rate, T-bar method |
| 2 | Area and conversions | Square feet, acres, 43,560, 5,280 |
| 3 | Commission | Sale price, total commission, side split, agent split |
| 4 | Loans | LTV, down payment, points, simple interest |
| 5 | Proration and settlement | Daily rate, seller debit, buyer credit, net problems |
| 6 | Valuation and investment | NOI, cap rate, value, GRM, ROI |
| 7 | Mixed timed set | 20 to 30 mixed questions with review |
Do not study one formula until it feels good and then stop. The exam mixes concepts. You need mixed practice before exam day.
What To Memorize First
If you are overwhelmed, start here:
- 43,560 square feet per acre.
- 5,280 feet per mile.
- Percent to decimal conversion.
- Part = whole x rate.
- Commission = sale price x rate.
- LTV = loan / value.
- Points = loan amount x points percent.
- NOI = income - operating expenses.
- Cap rate = NOI / value.
- Value = NOI / cap rate.
- Daily proration = annual amount / stated day count.
- PITI = principal + interest + taxes + insurance.
That list gives you a strong base for most exam math.
FAQ
How much math is on the Texas real estate exam?
Pearson's current sales content outline lists Real Estate Math Calculations as 7 scored items on the National/General portion. The 7 items are classified as 4 application items and 3 analysis items.
Is Texas real estate math hard?
It is usually not advanced math. The difficulty is recognizing the formula, converting units, reading the target, and avoiding traps. Most candidates can improve quickly with focused practice.
What formulas should I memorize for Texas real estate math?
Start with percent, commission, area, acreage, LTV, down payment, points, simple interest, property tax, proration, NOI, cap rate, value, GRM, ROI, occupancy, and vacancy formulas. Also memorize 43,560 square feet per acre and 5,280 feet per mile.
Does Pearson provide real estate math conversions at the test center?
Pearson's content outline says 43,560 square feet per acre and 5,280 feet per mile are not available at the test center and should be memorized.
Will the exam tell me whether to use 360 or 365 days for proration?
Pearson's math notes say a proration question will specify whether the calculation should be made on the basis of 360 or 365 days and whether the day of closing belongs to the buyer or seller.
Can I use a calculator on the Texas real estate exam?
Pearson says calculators are not required but recommended. Acceptable calculators include hand-held, battery-powered, or solar-powered financial calculators used in real estate, finance, accounting, and business. The calculator must not contain alpha characters, and calculators are not provided by test center staff.
Is there math on the Texas state portion?
Pearson lists Real Estate Math Calculations in the National/General sales outline. The Texas state outline does not list a separate state math section. Still, Texas-specific questions may include numbers, dates, amounts, or fact patterns that require careful reading.
Should I memorize every real estate math formula?
No. Memorize the core relationships and practice applying them. For example, cap rate, NOI, and value are one triangle of relationships. LTV, loan, and value are another. Percent, part, and whole cover many problems.
What is the best way to study real estate math?
Use a formula sheet for review, but spend most of your time solving mixed problems. The Texas real estate exam prep app gives you original math practice with explanations so you can build speed and accuracy. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.
Are these copied Texas real estate exam questions?
No. The examples and practice questions in this article are original educational practice questions, not copied exam questions. The Texas real estate exam prep app also uses original questions. Native Texas exam prep. Original questions. No copied exam questions. Not affiliated with TREC or Pearson VUE. Not a 180-hour pre-license course or a pass guarantee.
Verification Note
This article was verified on June 16, 2026 against Pearson VUE's Texas Real Estate Content Outlines and the Pearson VUE Texas Real Estate Candidate Handbook. Exam content outlines, calculator rules, scoring, and test center policies can change. Always check the current Pearson VUE and TREC materials before exam day.