CinnaPrep · Real Estate Exam Prep

Real Estate Exam Math: Every Formula You Actually Need

Math questions scare more candidates than they should. Nearly all of them reduce to five setups.

1. The T-Bar (Part = Total × Rate)

Commissions, interest, taxes, depreciation — identify which two numbers you have and solve for the third. A $15,000 commission on a $250,000 sale? 15,000 ÷ 250,000 = 6%.

2. Measurement

Memorize three numbers: 43,560 sq ft per acre, 5,280 feet per mile, 640 acres per section. "The NW¼ of the SE¼" = 640 ÷ 4 ÷ 4 = 40 acres — divide 640 by each fraction's denominator.

3. Prorations

Annual amount ÷ 360 (statutory) or 365 (actual) = daily rate; multiply by the seller's days of ownership. Taxes in arrears → debit seller, credit buyer. Prepaid items → the reverse.

4. Loan math

Monthly interest = balance × annual rate ÷ 12. LTV = loan ÷ value. One point = 1% of the LOAN. Backward questions: a $875 monthly interest-only payment at 7% means a balance of 875 × 12 ÷ 0.07 = $150,000.

5. Net-to-seller

The classic trap: a seller wanting to NET $188,000 after a 6% commission needs 188,000 ÷ 0.94 = $200,000 — divide by (1 − rate), never add 6%.

CinnaPrep generates unlimited math drills (prorations, commissions, transfer tax) with worked answers, plus a commission & proration calculator inside the mock exam.
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