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Texas real estate exam math cheat sheet

Download a 19-page formula guide and practice workbook organized around the seven official math areas, or use the complete 43-formula reference with examples online. It is one of the 21 free Texas real estate exam PDFs you can print without an account.

Download 19-page guideTry free math questions
7
official Pearson VUE math areas
35
core relationships in the printable PDF
43
formulas in the complete web reference
Quick answer

Pearson VUE assigns seven scored National/General Sales Agent questions to Real Estate Math Calculations, one in each official area. Four test application and three test analysis. Start with the 35 core relationships, memorize 43,560 square feet per acre and 5,280 feet per mile, then use the complete reference for reverse calculations and less common setups.

Official math blueprint

Seven areas. One scored item each.

These names follow Pearson VUE document #094401, revision 01/2026. The 12 groups in the full library are study groups, not additional official exam areas.

A2 core

Property area

Square footage and acreage

Open formulas
B7 core

Property valuation

Cap rate, taxes, value, and CMA

Open formulas
C2 core

Commission

Total commission and agent splits

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D7 core

Loan financing costs

Interest, fees, points, and LTV

Open formulas
E8 core

Settlement and closing

Proration, cash, seller net, and PITI

Open formulas
F6 core

Investment

Equity, return, basis, and gain

Open formulas
G3 core

Property management

EGI, NOI, and vacancy

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Try three problems

Choose the formula before you calculate.

Write your setup and answer first. Then open the explanation to check where each number belongs. These are original practice problems, not live exam questions.

01

Commission: whose share are you finding?

A property sells for $320,000. The agreed total commission is 5%. The listing brokerage receives half, and its sales agent receives 70% of that share. What does the agent earn?

Check answer and explanation

$320,000 × 0.05 × 0.50 × 0.70

$5,600

The total commission is $16,000. The listing brokerage receives $8,000, then pays the agent 70% of that amount. Each percentage applies to a different base.

Watch for this: Do not take 70% of the entire commission. These are hypothetical agreed rates, not standard commission rates.

02

Proration: who owes whom?

Annual property taxes are $3,650, paid in arrears. Use a 365-day year. The question assigns 120 days to the seller and makes the closing day the buyer’s responsibility. What is the seller’s tax adjustment?

Check answer and explanation

$3,650 ÷ 365 × 120

$1,200 seller debit and buyer credit

The daily tax is $10. The seller owes $1,200 for the assigned ownership period. Because the buyer will pay the bill later, the seller gives the buyer a credit at closing.

Watch for this: Use the day count and closing-day instruction in the question. Do not silently switch to a 360-day year.

03

Cap rate: gross rent or operating income?

A property has $72,000 in annual effective gross income and $24,000 in annual operating expenses. Its value is $600,000. What is the capitalization rate?

Check answer and explanation

($72,000 − $24,000) ÷ $600,000

8%

Net operating income is $48,000. Divide it by the property value to get 0.08, then express the result as a percentage.

Watch for this: Using $72,000 would give 12%, but cap rate uses NOI. Do not deduct mortgage payments from NOI.

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Printable math reference

Texas Real Estate Exam Math Formula
Cheat Sheet

35 core relationships across 7 official areas. Switch to the complete 43-formula library when you need more.
Choose formula depth

Core is the fast review. Complete adds reverse calculations and supporting relationships from the visual guide.

Commission & Splits2/3 core

Commission Amount

Sale Price × Commission Rate = Commission

$250,000 × 6% = $15,000

Agent Split

Brokerage Share × Agent Split % = Agent Share

$7,500 brokerage share × 60% = $4,500

Finding Sale Price from CommissionExtended

Commission ÷ Commission Rate = Sale Price

$15,000 ÷ 6% = $250,000

Proration2/2 core

Daily Rate

Annual Amount ÷ (360 or 365) = Daily Rate

$3,650 ÷ 365 = $10/day

Party's Share

Daily Rate × Days Owned = Proration

$10/day × 180 days = $1,800

Cap Rate & GRM3/3 core

Capitalization Rate

NOI ÷ Sale Price = Cap Rate

$50,000 ÷ $500,000 = 10%

Property Value (Income Approach)

NOI ÷ Cap Rate = Property Value

$50,000 ÷ 10% = $500,000

Gross Rent Multiplier

Sale Price ÷ Gross Rent = GRM

$500,000 ÷ $60,000 = 8.33

Property Tax2/2 core

The $140,000 homestead exemption below is for school-district tax. Use the applicable value, exemption and rate given in your question. This simplified example assumes no appraisal cap or other adjustment.

Taxable Value

Appraised Value − Exemptions = Taxable Value

$310,000 − $140,000 homestead = $170,000

Annual Property Tax

Taxable Value ÷ 100 × Tax Rate per $100 = Tax

$170,000 ÷ 100 × $2.20 = $3,740

Property Management3/5 core

Effective Gross Income

Potential Gross Income − Vacancy & Collection Loss + Other Income = EGI

$120,000 − $6,000 + $2,000 = $116,000

Net Operating Income

Effective Gross Income − Operating Expenses = NOI

$116,000 − $46,000 = $70,000 NOI

Vacancy Rate

Vacant Units ÷ Total Units = Vacancy Rate

5 ÷ 100 = 5%

Occupancy RateExtended

Occupied Units ÷ Total Units = Occupancy Rate

95 ÷ 100 = 95%

Rent per Square FootExtended

Annual Rent ÷ Square Feet = Rent per Sq Ft

$24,000 ÷ 2,000 = $12 per sq ft

Area & Acreage2/3 core

Square Footage

Length × Width = Area (sq ft)

50 ft × 100 ft = 5,000 sq ft

Acres Conversion

Square Feet ÷ 43,560 = Acres

87,120 sq ft ÷ 43,560 = 2 acres

Price per Square FootExtended

Price ÷ Square Footage = Price per Sq Ft

$500,000 ÷ 2,500 sq ft = $200/sq ft

Interest & Loan Costs6/6 core

Simple Interest

Principal × Rate × Time = Interest

$200,000 × 6% × 1 yr = $12,000/yr

Monthly Interest

Loan Balance × Annual Rate ÷ 12 = Monthly Interest

$200,000 × 6% ÷ 12 = $1,000

Loan Origination Fee

Loan Amount × Fee Rate = Origination Fee

$200,000 × 1% = $2,000

Discount Points

Loan Amount × Points (as %) = Point Cost

$200,000 × 2 points (2%) = $4,000

Principal Reduction (Amortization)

Monthly P&I Payment − Monthly Interest = Principal Paid

$1,500 payment − $1,000 interest = $500 principal

Prepayment Penalty

Loan Balance × Stated Penalty Rate = Prepayment Penalty

$180,000 × 2% = $3,600

Loan-to-Value (LTV)2/2 core

LTV Ratio

Loan Amount ÷ Property Value = LTV

$180,000 ÷ $200,000 = 90% LTV

Down Payment

Purchase Price − Loan Amount = Buyer Down Payment

$200,000 − $180,000 = $20,000

Seller Net & Required Price4/5 core

Seller Net

Sale Price − Payoff − Selling Costs = Seller Net

$425,000 − $298,000 − $31,375 = $95,625

Required Sale PriceExtended

(Target Net + Payoff + Fixed Costs) ÷ (1 − Selling-Cost Rate) = Required Price

($85,000 + $298,000 + $3,000) ÷ 94% = $410,638.30

Buyer Cash Required

Down Payment + Buyer Costs + Prepaids − Credits = Cash Required

$60,000 + $7,500 + $2,100 − $1,000 = $68,600

Transfer Tax (National Formula)

Sale Price ÷ Tax Unit × Rate = Transfer Tax

$300,000 ÷ $1,000 × $2 = $600

Recording Fee

Recorded Units × Fee per Unit = Recording Fee

12 pages × $5 per page = $60

Mortgage Qualifying Ratios1/3 core

Monthly PITI

Monthly P&I Payment + Monthly Taxes + Monthly Insurance = PITI

$2,400 + $310 + $145 = $2,855/month

Front-End RatioExtended

Housing Payment ÷ Gross Monthly Income = Front-End Ratio

$2,576 ÷ $9,200 = 28%

Back-End RatioExtended

(Housing Payment + Monthly Debt) ÷ Gross Monthly Income = Back-End Ratio

($2,576 + $625) ÷ $9,200 = 34.79%

Profit, Loss & Equity6/7 core

Equity

Current Value − Loan Balance = Equity

$420,000 − $286,000 = $134,000

Appreciation

Current Value − Purchase Price = Appreciation

$420,000 − $350,000 = $70,000

Market Value Depreciation

Original Value − Current Value = Depreciation

$350,000 − $315,000 = $35,000

Return on Investment (ROI)

Annual Return ÷ Cash Invested = ROI

$12,000 ÷ $150,000 = 8% ROI

Profit or LossExtended

Net Proceeds − Total Investment = Profit or Loss

$410,000 − $365,000 = $45,000 profit

Adjusted Basis

Purchase Price + Capital Improvements − Allowed Depreciation = Adjusted Basis

$350,000 + $40,000 − $25,000 = $365,000

Estimated Taxable Gain

Net Sale Proceeds − Adjusted Basis = Gain

$410,000 − $365,000 = $45,000 gain

Comparable Sales Adjustments2/2 core

Inferior Comparable

Comparable Sale Price + Adjustment = Adjusted Price

$415,000 + $12,000 = $427,000

Superior Comparable

Comparable Sale Price − Adjustment = Adjusted Price

$415,000 − $8,000 = $407,000

Study method

Turn the formulas into points

A formula sheet only helps when you can name the setup, choose the right rate, and repair misses after mixed practice.

Use the sheet under exam pressure

1. Name the setup. Decide whether the question is commission, proration, tax, area, income math, LTV, or seller net before touching the calculator.

2. Write one line. Put the formula on your scratch board, then plug in numbers. That prevents rate and unit drift.

3. Check the final ask. The exam often gives extra facts. Answer what the last sentence asks for.

4. Drill mixed math. A formula sheet is only useful when you can recognize which formula belongs to the question.

Key Numbers and Rates

1 acre43,560 sq ft
1 square yard9 sq ft
1 mile5,280 ft
1 section640 acres
Property taxrate per $100 of value
Taxable valueappraised - exemptions
Homestead exemptionreduces taxable value
Transfer taxNational: use rate given; Texas: none
Proration day count360 or 365 (per question)
1 mill$1 per $1,000

Mistakes Students Make

  • For simplified tax questions, use the value, applicable exemption, and rate given for that taxing unit. Do not apply a school exemption to every local tax.
  • NOI is effective gross income minus operating expenses, before debt service and income tax.
  • LTV percent plus down payment percent equals 100% only when both use the same property value.
  • Transfer-tax math is testable nationally. Use the supplied rate. Texas itself has no statewide fee-simple transfer tax.
  • GRM uses gross rent. Cap rate uses net operating income.
  • For LTV, use the lending value stated in the question, often the lower of sale price and appraised value.

Final 5-minute memory check

Texas property tax is a rate per $100 of taxable value.

Percent rates must become decimals before multiplying.

Prorations need the right owner days and 360/365 basis before the math.

LTV uses the lending value stated in the question, often the lower of sale price and appraised value.

Mixed-practice repair log

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Use it well

Turn the cheat sheet into points.

A formula sheet helps only if it becomes recall. Use this three-pass routine before you move into timed math practice.

Pass 1Write it cold

Start with the core view. Cover the equations, write each relationship from memory, and circle anything that needs a peek.

Pass 2Name the setup

Before calculating, say the category first: commission, proration, property tax, income math, area, LTV, seller net, or appraisal.

Pass 3Drill mixed math

Use mixed practice after the sheet. The exam will not label the formula for you, so recognition matters as much as arithmetic.

Related exam concepts

What to review after the sheet.

The cheat sheet is the memory aid. These pages help you turn each formula into exam-ready recognition.

Full referenceTexas real estate exam math formulasUse this when you want the worked examples, trap notes, and study method behind the cheat sheet.CalculatorProperty tax calculatorCheck taxable value, the homestead exemption, and the rate per $100 of taxable value.Deep guideTexas real estate exam prorationReview day counting, the 360 vs. 365 basis, buyer credits, and seller credits before you drill.Income mathCap rate on the Texas real estate examSeparate NOI, cap rate, property value, and GRM so investment math stops blurring together.
FAQ

Texas real estate exam math cheat sheet questions.

How much math is on the Texas real estate exam?

Pearson VUE's current Texas sales outline assigns 7 scored National items to Real Estate Math Calculations: 4 application questions and 3 analysis questions. The seven official subareas are property area, valuation, commission, loan financing, settlement and closing, investment, and property management.

Do I need to memorize all 43 formulas?

Pearson VUE does not publish a required formula list. Start with the 35 high-use relationships in the 19-page guide, especially commission, proration, property tax, area, LTV, seller net, NOI, cap rate, and financing costs. Use the complete 43-formula web view to recognize less common setups and reverse calculations.

Can I rely on a cheat sheet during the Texas real estate exam?

No. Use this cheat sheet before the exam to build memory. You should be able to write the formulas from memory and recognize which formula a word problem is asking for.

What is a common Texas real estate exam math mistake?

A common mistake is choosing the wrong setup. Candidates may apply the property tax rate before subtracting the exemption, use the wrong 360 vs. 365 day count, reverse proration credits, or use gross rent when the problem asks for cap rate.

Is this cheat sheet enough to learn Texas real estate exam math?

Use it as a reference while you learn, then practice without it. If you can recall a formula but keep choosing the wrong one, spend the next session explaining what each word problem asks you to find before calculating.

Official references

This cheat sheet follows the current Pearson VUE outline and candidate materials, TREC rules, and Texas Comptroller guidance. It is for exam prep, not tax, lending, legal, or closing advice.

Source review: September 24, 2026. Rules and outline checked for September 23, 2026.

Drill the formulas

The sheet helps you remember.
Practice makes it test-ready.

Work on the math you missed in short sessions on your phone. Math Coach includes two free worked-problem attempts per topic with an account. Full access is $59.99 once, with no subscription, and includes 1,377 original practice questions across 14 exam areas.

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