Real Estate Math Practice Questions
Real Estate Math Calculations is 7 scored items on the National/General portion of the Texas Sales Agent exam, with one item in each official subtopic: property area, valuation, commission, loan financing costs, settlement and closing costs, investment, and property management. Pearson classifies 4 items as application and 3 as analysis, with no knowledge-only math items. Work the questions below, then read every explanation.
Exam prep only
Math is a national exam calculation area, not a national law category. The arithmetic is usually simple. The scored work is choosing the right relationship, rejecting extra facts, and carrying the units through to the final answer.
Memorize the two facts not provided at the test center: 43,560 square feet equals one acre, and 5,280 feet equals one mile. For prorations, use exactly the day count and closing-day convention the question states.
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Real Estate Math Practice Questions
15 scenario-based questions on real estate math, scored, each with a full explanation after you answer. Every question is also written out below if you would rather study at your own pace.
Every question explained
Prefer to study at your own pace? Here are all 15 questions. Read each one and pick your answer, then reveal the correct answer, the reasoning, and the trap that catches most candidates.
1. A property sells for $350,000 with a 6 percent total commission. What is the total commission?
- A.$2,100
- B.$21,000
- C.$210,000
- D.$5,833
Show answer and explanation
Correct answer: B. $21,000
Why B is correct: Commission equals sale price times the commission rate. $350,000 times 0.06 equals $21,000. Convert the percentage to a decimal before multiplying.
Trap: Move the decimal correctly. 6 percent is 0.06, so the answer is $21,000, not $2,100 or $210,000.
Source: Real estate math; commission calculation
2. A rectangular lot measures 150 feet by 290.4 feet. How many acres is it, given that one acre is 43,560 square feet?
- A.0.5 acre
- B.1 acre
- C.1.5 acres
- D.2 acres
Show answer and explanation
Correct answer: B. 1 acre
Why B is correct: Area equals length times width: 150 times 290.4 equals 43,560 square feet. Dividing by 43,560 square feet per acre gives exactly 1 acre.
Trap: Memorize 43,560 square feet per acre. It is not provided at the test center.
Source: Real estate math; legal description and property area calculation
3. An income property has a net operating income of $48,000 and sells for $600,000. What is the capitalization rate?
- A.6 percent
- B.8 percent
- C.12.5 percent
- D.80 percent
Show answer and explanation
Correct answer: B. 8 percent
Why B is correct: Cap rate equals net operating income divided by price. $48,000 divided by $600,000 equals 0.08, or 8 percent. Net operating income excludes debt service.
Trap: Cap rate is NOI divided by price. Do not include mortgage payments in NOI.
Source: Income approach; capitalization rate
4. A buyer pays 2 discount points on a $250,000 loan. What is the cost of the points?
- A.$500
- B.$2,500
- C.$5,000
- D.$50,000
Show answer and explanation
Correct answer: C. $5,000
Why C is correct: One discount point equals one percent of the loan amount. Two points on $250,000 is 2 percent, or $5,000. CFPB describes discount points as an upfront closing fee exchanged for a lower rate, but the size of the rate reduction varies.
Trap: Points use the loan amount. One point does not automatically reduce the interest rate by a fixed amount.
Source: Real estate math; discount points
5. A buyer makes a $40,000 down payment on a $250,000 home and finances the rest. What is the loan-to-value ratio?
- A.16 percent
- B.60 percent
- C.84 percent
- D.100 percent
Show answer and explanation
Correct answer: C. 84 percent
Why C is correct: The loan amount is $250,000 minus $40,000, or $210,000. LTV equals loan divided by value: $210,000 divided by $250,000 equals 0.84, or 84 percent.
Trap: Subtract the down payment to get the loan first, then divide by value. The down payment is not the LTV.
Source: Real estate math; loan-to-value
6. A Texas home has an appraised value of $300,000 and a $140,000 school-district residence homestead exemption. The tax rate is $2.50 per $100 of taxable value. What is the annual property tax?
- A.$4,000
- B.$7,500
- C.$2,000
- D.$160,000
Show answer and explanation
Correct answer: A. $4,000
Why A is correct: Subtract the exemption first: $300,000 minus $140,000 equals $160,000 taxable value. Texas property tax is stated per $100 of value: $160,000 divided by 100 equals 1,600 units, times $2.50 equals $4,000.
Trap: Subtract exemptions before applying the rate, and remember Texas states the rate per $100 of value, not per $1,000.
Source: Texas Tax Code §11.13(b); property tax calculation
7. Annual property taxes are $3,650. The question says to use a 365-day year, and the seller owns the day of closing. The home closes on day 90 of the year. What is the seller's share of taxes?
- A.$90
- B.$900
- C.$10
- D.$1,000
Show answer and explanation
Correct answer: B. $900
Why B is correct: The daily rate is $3,650 divided by 365, or $10 per day. The seller owns 90 days (closing day included), so the seller's share is $10 times 90, or $900. Always use the day count and closing-day rule the question states.
Trap: Use exactly the 360 or 365 convention and the closing-day rule the question gives. Choosing the wrong one is the most common avoidable miss.
Source: Real estate math; proration (convention per question)
8. An investor buys a residential rental property for $550,000. The land allocation is $110,000. If the question directs the investor to divide the building basis evenly over 27.5 years, what is the annual depreciation?
- A.$4,000
- B.$16,000
- C.$20,000
- D.$440,000
Show answer and explanation
Correct answer: B. $16,000
Why B is correct: Land is not depreciable. Subtract the $110,000 land allocation from $550,000 to get a $440,000 building basis. Divide $440,000 by 27.5 years to get $16,000 per year under the simplified method stated in the question.
Trap: Do not depreciate land. Real tax depreciation uses detailed timing rules, so follow the simplified method only when the question directs you to use it.
Source: Depreciation; IRS Publication 527, residential rental property
9. An apartment property has potential monthly rent of $30,000, a 5 percent vacancy and collection loss, and $1,000 of other monthly income. What is monthly effective gross income?
- A.$28,500
- B.$29,000
- C.$29,500
- D.$31,000
Show answer and explanation
Correct answer: C. $29,500
Why C is correct: Vacancy and collection loss is $30,000 times 5 percent, or $1,500. Effective gross income is $30,000 minus $1,500 plus $1,000, which equals $29,500.
Trap: Subtract vacancy from potential income before adding other income. Do not treat potential rent as cash collected.
Source: Real estate math; property management calculation
10. An investor bought a property for $250,000 and later sold it for $300,000. What is the percent of gain?
- A.16.7%
- B.20%
- C.25%
- D.50%
Show answer and explanation
Correct answer: B. 20%
Why B is correct: Percent of gain equals the gain divided by the original cost: (300,000 - 250,000) / 250,000 = 50,000 / 250,000 = 0.20, or 20%. Always divide the change by the original (cost) basis.
Trap: Divide the gain by the original cost, not by the sale price. Dividing by 300,000 gives the wrong 16.7%.
Source: Real estate math; return on investment and depreciation
11. A $200,000 loan has a monthly principal-and-interest factor of $6.32 per $1,000 borrowed. What is the monthly P&I payment?
- A.$632
- B.$1,264
- C.$1,896
- D.$12,640
Show answer and explanation
Correct answer: B. $1,264
Why B is correct: Divide the loan by 1,000 to get the number of thousands, then multiply by the factor: 200,000 / 1,000 = 200; 200 x 6.32 = $1,264 monthly principal and interest.
Trap: Multiply the number of thousands by the per-$1,000 factor. Do not multiply the whole loan by the factor.
Source: Settlement calculation; PITI payment factor
12. A triangular lot has a base of 300 feet and a height of 200 feet. What is its area in square feet?
- A.60,000
- B.30,000
- C.15,000
- D.25,000
Show answer and explanation
Correct answer: B. 30,000
Why B is correct: The area of a triangle is one-half the base times the height: 0.5 x 300 x 200 = 30,000 square feet. Forgetting the one-half factor gives the incorrect 60,000.
Trap: Triangle area uses one-half base times height. Skipping the one-half doubles the answer.
Source: Real estate math; legal description and property area calculation
13. A property manager charges 8 percent of collected monthly rent. If the manager collects $24,000 this month, what is the management fee?
- A.$192
- B.$1,920
- C.$3,000
- D.$19,200
Show answer and explanation
Correct answer: B. $1,920
Why B is correct: Multiply collected rent by the management-fee rate: $24,000 times 0.08 equals $1,920.
Trap: Use the income base stated in the agreement or question. Here the fee is based on collected rent, not potential rent.
Source: Real estate math; property management calculation
14. A home sells for $360,000 with a 6% commission split equally between the listing and selling brokerages. The listing agent keeps 60% of the listing brokerage's share. How much does the listing agent receive?
- A.$21,600
- B.$10,800
- C.$6,480
- D.$12,960
Show answer and explanation
Correct answer: C. $6,480
Why C is correct: Total commission: 360,000 x 6% = $21,600. Split equally: 21,600 / 2 = $10,800 to the listing brokerage. The agent keeps 60%: 10,800 x 0.60 = $6,480.
Trap: Work the splits in order: total commission, then the brokerage split, then the agent's share. Each step reduces the number.
Source: Real estate math; commission calculation and splits
15. A seller wants to net $188,000 after paying a 6% commission and no other costs. What must the sale price be?
- A.$199,280
- B.$200,000
- C.$188,000
- D.$212,000
Show answer and explanation
Correct answer: B. $200,000
Why B is correct: The seller keeps 100% minus 6%, or 94%, of the price. Divide the desired net by 0.94: 188,000 / 0.94 = $200,000. Check: 200,000 x 0.94 = $188,000.
Trap: To find a required sale price, divide the net by (1 minus the commission rate). Do not just add 6% to the net.
Source: Settlement calculation; seller net and required price
Turn these misses into mastery
Practice shows you the gaps. These full guides for real estate math teach the rule behind every question, with Texas statutes and the traps that catch most candidates.
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Get the full question bankFrequently asked questions
How many math questions are on the Texas exam?+
Real Estate Math Calculations is 7 scored items on the National/General portion of the Texas Sales Agent exam. Pearson assigns one item each to property area, valuation, commission, loan financing, settlement and closing, investment, and property management.
How are prorations handled on the Texas exam?+
Each proration question tells you whether to use a 360-day or 365-day year and whether the day of closing belongs to the buyer or the seller. Use exactly what the question specifies. Using the wrong convention is the most common avoidable mistake.
How is Texas property tax calculated?+
When a question gives an applicable exemption, subtract it from appraised value to get taxable value. Texas tax rates are commonly stated per $100 of taxable value, so divide taxable value by 100 and multiply by the stated rate.
Should I study transfer-tax math for the Texas exam?+
Yes for the National/General math outline. Pearson expressly includes transfer tax and recording fees under settlement and closing costs, so use any rate and tax unit supplied by the question. In a Texas-specific transaction, Article VIII, Section 29 of the Texas Constitution prohibits a new tax on a fee-simple conveyance.