Download a readable two-page core sheet organized around the seven official math areas, or use the complete 43-formula reference with examples online.
Pearson VUE currently assigns seven scored National questions to Real Estate Math Calculations: four application and three analysis questions. Start with the 35 core relationships, then use the complete reference to recognize reverse calculations and less common setups.
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.
Square footage and acreage
Cap rate, taxes, value, and CMA
Total commission and agent splits
Interest, fees, points, and LTV
Proration, cash, seller net, and PITI
Equity, return, basis, and gain
EGI, NOI, and vacancy
Download the focused two-page sheet, study worked examples, or print the full web library.
Pass Texas
Texas sales agent exam prepPrintable math reference
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
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
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
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
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
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
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
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
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
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%
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
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
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.
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.
A formula sheet helps only if it becomes recall. Use this three-pass routine before you move into timed math practice.
Start with the core view. Cover the equations, write each relationship from memory, and circle anything that needs a peek.
Before calculating, say the category first: commission, proration, property tax, income math, area, LTV, seller net, or appraisal.
Use mixed practice after the sheet. The exam will not label the formula for you, so recognition matters as much as arithmetic.
The cheat sheet is the memory aid. These pages help you turn each formula into exam-ready recognition.
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.
Pearson VUE does not publish a required formula list. Start with the 35 high-use relationships on the two-page PDF, especially commission, proration, property tax, area, LTV, seller net, NOI, cap rate, and financing costs. Use the complete 43-formula view to recognize less common setups and reverse calculations.
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.
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.
It is enough for review, not enough for mastery. Pair it with worked examples and timed practice so you can apply the formulas under exam pressure.
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.
