Texas Real Estate Math Practice Questions with Worked Answers
Real estate math accounts for seven scored National questions on the Texas sales agent exam. This free 15-question quiz covers the seven math groups, with worked calculations and explanations of common mistakes. One separate Texas school-tax example follows. Start without an account, check your answers, then choose the lesson or calculator behind a missed question.
15 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.
15 questions
~11 min
National practice only
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Study mode · National principles
Work through the questions at your own pace.
Choose an answer mentally, then open its explanation. Each question has a source and a point to watch. These are original practice questions, not Pearson VUE exam items or a prediction of your result.
1
Calculate the fee on the agreed base
In this hypothetical agreement, the total commission is 6 percent of a $350,000 sale price. What is the total commission before any brokerage or agent splits?
A.$21,000
B.$10,500
C.$19,800
D.$2,100
Check answer and explanation
Correct answer: A. $21,000
Total commission = sale price × agreed rate. $350,000 × 0.06 = $21,000. No split has been applied yet. The 6 percent rate is supplied for this exercise, not a standard or required commission.
Watch for this: Calculate the total first. Do not halve it unless the question actually specifies a split.
A rectangular lot measures 150 feet by 290.4 feet. How many acres does it contain? Use 43,560 square feet per acre.
A.0.5 acre
B.1 acre
C.1.5 acres
D.2 acres
Check answer and explanation
Correct answer: B. 1 acre
Square feet = 150 × 290.4 = 43,560. Acres = 43,560 ÷ 43,560 = 1. Both dimensions are already in feet, so no length conversion is needed. Multiplying the two lengths gives area; adding the sides would give a perimeter.
Watch for this: The conversion is provided for this exercise. Pearson says to memorize it for the exam.
Rule: Real estate math; legal description and property area calculation
An income property's stabilized annual net operating income is $48,000. It sells for $600,000. What capitalization rate does that income and price imply?
A.6 percent
B.12.5 percent
C.8 percent
D.80 percent
Check answer and explanation
Correct answer: C. 8 percent
Cap rate = annual NOI ÷ price. $48,000 ÷ $600,000 = 0.08, or 8 percent. The supplied NOI is before debt service; do not subtract mortgage payments from it again. This one-year income-to-price ratio is not the investor's total return after financing and resale.
Watch for this: Keep the annual income period. The reciprocal, price divided by NOI, is a multiplier rather than the cap rate.
A buyer pays 2 discount points on a $250,000 loan. What is the cost of the points?
A.$500
B.$2,500
C.$50,000
D.$5,000
Check answer and explanation
Correct answer: D. $5,000
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.
Watch for this: Points use the loan amount. One point does not automatically reduce the interest rate by a fixed amount.
A home's sale price and appraised value are both $250,000. A buyer pays $40,000 down and finances the remaining price, with no financed fees. What is the loan-to-value ratio?
A.84 percent
B.16 percent
C.80 percent
D.100 percent
Check answer and explanation
Correct answer: A. 84 percent
Loan amount = $250,000 − $40,000 = $210,000. LTV = $210,000 ÷ $250,000 × 100 = 84 percent. The price and appraisal are equal here, so the value base is unambiguous. The 16 percent down-payment share is the complement, not the LTV.
Watch for this: Subtract the down payment to get the loan first, then divide by value. The down payment is not the LTV.
A home is currently worth $320,000. Its only secured debt is a mortgage with a $210,000 unpaid balance. What is the owner's equity before any sale costs?
A.$210,000
B.$320,000
C.$110,000
D.$530,000
Check answer and explanation
Correct answer: C. $110,000
Equity = current value − secured debt. $320,000 − $210,000 = $110,000. That is the owner's unencumbered value under the stated facts, not a promise of $110,000 cash at closing. Selling costs and other closing adjustments would reduce or change the final proceeds.
Watch for this: Use the current unpaid balance, not the original loan amount. Do not add the mortgage to the home's value.
Annual property taxes are $3,650. For this problem, use a 365-day year. The seller owns the property from January 1 through closing, and closing occurs on day 90 of the year. The seller is charged for the closing day. What is the seller's share?
A.$890
B.$900
C.$910
D.$2,750
Check answer and explanation
Correct answer: B. $900
Daily tax = $3,650 ÷ 365 = $10. The seller is responsible for 90 days, including closing day, so $10 × 90 = $900. If the buyer owned closing day instead, the seller would have 89 days. That is not the instruction here.
Watch for this: Do not change the stated 365-day basis to 360. Whether the tax is prepaid or unpaid is a separate question that determines the closing debit or credit.
Rule: Real estate math; proration (convention per question)
A residential rental property's stated cost basis is $550,000, including $110,000 allocated to land. For this simplified exercise, use straight-line GDS depreciation over 27.5 years for one full recovery year. Assume no other basis adjustments or partial-year calculation. What is the annual building depreciation?
A.$4,000
B.$20,000
C.$16,000
D.$440,000
Check answer and explanation
Correct answer: C. $16,000
Building basis = $550,000 − $110,000 = $440,000. Full-year depreciation = $440,000 ÷ 27.5 = $16,000. Land is not depreciable. Residential rental buildings under GDS generally use 27.5 years, but actual first and last years use the mid-month convention; this is not a first-year tax deduction calculation.
Watch for this: A building losing value for an appraisal and a rental building's tax depreciation are different concepts. Do not depreciate the land or ignore the stated tax method.
An apartment property's potential monthly rent is $30,000. Vacancy and collection loss equal 5 percent of that rent only. Other monthly income is $1,000, already net of any collection loss. What is monthly effective gross income?
A.$29,450
B.$28,500
C.$31,000
D.$29,500
Check answer and explanation
Correct answer: D. $29,500
Lost rent = $30,000 × 0.05 = $1,500. Effective gross income = $30,000 − $1,500 + $1,000 = $29,500 per month. The problem applies the loss rate to rent only. Operating expenses have not yet been deducted, so this is not NOI.
Watch for this: Applying 5 percent to all $31,000 would give $29,450, but would disregard the stated treatment of other income.
Rule: Real estate math; property management calculation
A property was purchased for $250,000 and later sold for $300,000. Ignoring income, improvements, financing, taxes and transaction costs, what is the percentage increase in price?
A.20 percent
B.16.7 percent
C.25 percent
D.50 percent
Check answer and explanation
Correct answer: A. 20 percent
Price increase = $300,000 − $250,000 = $50,000. Percentage increase = $50,000 ÷ $250,000 × 100 = 20 percent. This measures price growth only. It is not taxable gain or the investor's net return, which require additional facts.
Watch for this: Divide the change by the original price, not the later sale price. No holding period is given, so this is not an annualized return.
Rule: Investment math; percentage price increase, not taxable gain
A payment factor does not include every housing cost
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
Check answer and explanation
Correct answer: B. $1,264
Loan units = $200,000 ÷ $1,000 = 200. Monthly P&I = 200 × $6.32 = $1,264. This supplied factor covers principal and interest only. Taxes, insurance and any other charges are separate; the answer is not a complete monthly housing budget.
Watch for this: Multiply the number of thousands by the per-$1,000 factor. Do not multiply the whole loan by the factor.
Rule: Settlement math; supplied principal-and-interest factor, not full PITI
A triangular lot has a base of 300 feet and a perpendicular height of 200 feet. What is its area in square feet?
A.60,000 square feet
B.15,000 square feet
C.30,000 square feet
D.25,000 square feet
Check answer and explanation
Correct answer: C. 30,000 square feet
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.
Watch for this: Triangle area uses one-half base times height. Skipping the one-half doubles the answer.
Rule: Real estate math; legal description and property area calculation
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.$3,000
C.$19,200
D.$1,920
Check answer and explanation
Correct answer: D. $1,920
Management fee = collected rent × the agreed rate. $24,000 × 0.08 = $1,920. The agreement uses rent actually collected, not potential rent. The 8 percent figure is a hypothetical contract term, not an industry-standard fee.
Watch for this: Use the income base stated in the agreement or question. Here the fee is based on collected rent, not potential rent.
Rule: Real estate math; property management calculation
For this hypothetical transaction, a $360,000 sale produces a 6 percent total commission under the parties' agreements. The two brokerages split that amount equally. The listing agent receives 60 percent of the listing brokerage's share. What does that agent receive?
A.$6,480
B.$10,800
C.$12,960
D.$21,600
Check answer and explanation
Correct answer: A. $6,480
Total commission = $360,000 × 0.06 = $21,600. Listing brokerage share = $21,600 × 0.50 = $10,800. Listing agent share = $10,800 × 0.60 = $6,480. These rates and splits are supplied assumptions, not mandatory or standard arrangements.
Watch for this: Work the splits in order: total commission, then the brokerage split, then the agent's share. Each step reduces the number.
Rule: Real estate math; commission calculation and splits
A seller's target is $188,000 after a negotiated commission of 6 percent of the sale price. There is no mortgage payoff or other seller cost. What sale price meets the target?
A.$199,280
B.$200,000
C.$188,000
D.$212,000
Check answer and explanation
Correct answer: B. $200,000
The seller retains 1 − 0.06 = 0.94 of the sale price. Required price = $188,000 ÷ 0.94 = $200,000. Check: $200,000 − $12,000 commission = $188,000. This simplified target calculation is not a recommendation to use a net listing.
Watch for this: To find a required sale price, divide the net by (1 minus the commission rate). Do not just add 6% to the net.
Rule: Settlement calculation; seller net and required price
Choose the relationship before using the calculator.
Write the quantity you need on the left. Then make sure every number on the right uses the correct base and time period. Each link leads to a worked example and its sources.
Potential rent − vacancy and collection loss + other income. Apply loss only to the base specified in the problem.
Need a quick reasonableness check? A down payment should put this purchase loan below 100% LTV. A triangle with the same base and height has half the rectangle's area. The agent's share cannot exceed the commission being split in the example.
Optional supplement · Texas-specific applications
1 Texas rule to keep separate.
These examples require Texas form or statutory knowledge. They are not included in the National quiz or its score. If you only need National practice, you can skip to the study resources.
1
A school exemption does not apply to every taxing unit
A Texas residence homestead has an assessed value of $300,000. It qualifies for the $140,000 general school-district homestead exemption. Assume no other exemptions, adjustments or tax ceiling. Using a hypothetical school-district rate of $1.00 per $100, what is the annual school-district tax only?
A.$3,000
B.$1,600
C.$1,400
D.$160,000
Check answer and explanation
Correct answer: B. $1,600
School taxable value = $300,000 − $140,000 = $160,000. School tax = $160,000 ÷ 100 × $1.00 = $1,600. The $140,000 general school exemption is the current statutory amount; the $1.00 rate is hypothetical. This is not the total property-tax bill. Other taxing units have their own rates and applicable exemptions.
Watch for this: Do not subtract the school exemption from every taxing unit's value. Start with the stated assessed value and calculate this unit's tax only.
Rule: Texas Tax Code 1.04(10) and 11.13(b); school-district exemption
The school-district exemption does not turn the result into a complete tax bill. County, city and other applicable taxes need their own values, exemptions and rates. Use the assessed value given here; do not invent an appraisal adjustment or a tax ceiling.
Know the scope
How this set fits the National outline.
The official topic has 7 scored items. The counts below describe our 15-question sample, not a promise of which questions you will see. The Texas bonus examples are excluded.
Real Estate Math: official allocation and free practice coverage
National subtopic
Exam items
Our questions
Property area calculations
1
2
Property valuation
1
2
Commission/compensation
1
2
Loan financing costs
1
2
Settlement and closing costs
1
3
Investment
1
2
Property management calculations
1
2
A sample is not complete coverage of every possible question. See Pearson VUE's Salesperson outline, section VIII. Sources beside each answer explain the underlying principle. Texas-specific rules and examples link to their own authority.
Read the last sentence first: what quantity are you solving for? Write the formula, label the units, substitute the numbers and check whether the result makes sense. A correct calculation with the wrong income period or percentage base still answers the wrong question.
These original questions use hypothetical prices, rates and transactions. They are not Pearson VUE items, current loan offers or standard brokerage fees. The set covers all seven broad math groups, not every listed skill. Its difficulty and topic mix have not been calibrated to the actual exam.
Pearson lists four application and three analysis items in this seven-item category. Memorize 43,560 square feet per acre and 5,280 feet per mile. Follow the proration year length and closing-day allocation supplied by the question. Keep intermediate calculations unrounded when possible, then use the requested precision or standard rounding.
Choose what to study next.
Start with the lesson behind a missed question, then try another problem without notes.
How many math questions are on the Texas real estate exam?
The Salesperson National outline assigns seven scored items to Real Estate Math Calculations, one each to area, valuation, commission, financing costs, settlement, investment and property management. The cognitive mix is four application and three analysis items. This is the category allocation, not a promise that only seven items anywhere on the exam can involve numbers.
Which conversions should I memorize?
Pearson explicitly says 43,560 square feet per acre and 5,280 feet per mile are not provided at the test center. For area, calculate square feet before converting to acres. For a triangle, use perpendicular height, not a sloping side.
Should I always use a 360-day year for prorations?
No. Follow the year length and closing-day allocation stated in the question. Pearson's notes say proration questions supply a 360- or 365-day basis and/or the closing-day allocation. In the worked example here, both are explicit. Do not silently substitute a Texas contract convention for a National problem's instructions.
Are the commission percentages and loan figures current market rates?
No. They are hypothetical inputs for arithmetic, not quoted market rates or recommended fees. Real estate commissions are negotiable. A discount point is one percent of the loan amount, but its effect on the interest rate varies with the offer.
Does a perfect score mean I have mastered exam math?
It means you answered these 15 questions correctly. The set has not been calibrated to Pearson VUE's exam and does not cover every skill, such as every buyer-cost adjustment, interest calculation or investment-return method. Try fresh problems and explain the setup without looking at the answer.
Can I keep practicing in the app, and will this result follow me?
Yes, you can continue in the browser or mobile app. Selected activities are free; full access is paid. Sign in to save practice completed inside the app. This website topic-quiz result does not transfer to your account. The 15 questions and the Texas example on this page remain free.
Sources and review notes
Reviewed September 7, 2026 for rules effective through September 5, 2026. Pearson VUE supplies the syllabus and exam conventions, not these questions. OpenStax supports the arithmetic and geometry methods; CFPB, IRS and federal banking guidance support the financial definitions. California BOE material is used only for general income calculations, not Texas tax rules. The Texas example uses the Comptroller and Texas Tax Code. All dollar figures, dimensions, rates and agreements in the exercises are hypothetical except the identified statutory exemption and standard unit conversions. This page is exam preparation, not advice for a transaction.
Use the source beside an answer to check the specific rule.
