Real Estate Calculations

Real Estate Math Made Simple

Learn the formulas, then drill them with worked answers until the numbers feel easy.

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Formula Sheet

6 Formulas That Cover Most Exam Math

Commission

Sale Price × Rate

$350,000 × 6% = $21,000

Loan-to-Value

Loan ÷ Value

$280,000 ÷ $350,000 = 80%

Capitalization Rate

Net Operating Income ÷ Price

$42,000 ÷ $600,000 = 7%

Area and Acreage

1 Acre = 43,560 sq ft

2 acres = 87,120 sq ft

Prorations

Daily Rate × Days

$3,650 ÷ 365 × 90 = $900

Percent Change

(New − Old) ÷ Old

($330k − $300k) ÷ $300k = 10%

Worked Example

Solve a Commission Split Step by Step

A home sells for $350,000 at a 6% commission split evenly between brokers. The listing agent keeps 60% of their broker’s share. What does the agent earn?

  1. 1

    Find the Total Commission

    $350,000 × 6% = $21,000

  2. 2

    Split Between Brokers

    $21,000 ÷ 2 = $10,500

  3. 3

    Apply the Agent’s Split

    $10,500 × 60% = $6,300

Agent Earns $6,300

Math Drills

Practice the Math in Short Sets

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Math Drill 1

Commission and Splits

TimedAnswers explained
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Math Drill 2

Financing and LTV

TimedAnswers explained
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Math Drill 3

Prorations and Closing Costs

TimedAnswers explained
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