Texas real estate exam math: the calculations you actually need

Math is a small slice of the Texas exam — roughly 7 of the 80 national questions — but it's where a surprising number of otherwise-ready candidates lose their pass. The good news: it's the most learnable part of the whole exam, because it's a fixed set of calculation types you can practice to automaticity.

Commission

The most common math question. Sale price × commission rate = total commission; split it between brokerages as the question specifies. A $250,000 sale at 6% is $15,000 total; split evenly, each side gets $7,500. Watch for questions that ask for one side's share versus the total — that's the trap.

Proration

Taxes, insurance, and rent split between buyer and seller at closing. Find the daily amount (annual ÷ 365, or ÷ 360 if the question says a banker's year), then multiply by the number of days each party owns. The single biggest mistake is using the wrong day-count basis — read the question.

Loan-to-value and points

• LTV = loan ÷ value. A 20% down payment means an 80% LTV. Above 80% LTV, conventional loans typically require PMI.
• One discount point = 1% of the loan amount. Two points on a $200,000 loan is $4,000.

Value, profit, and area

• Profit/appreciation: sale = cost × (1 + gain%). A 20% profit on a $400,000 purchase means a $480,000 sale.
• Cap rate (income approach): value = net operating income ÷ cap rate.
• Area: 1 acre = 43,560 square feet. Memorize it — it appears in acreage and lot questions.

How to actually get good at this

Reading these once won't do it. The only thing that works is repetition until the setup is automatic — you should recognize a proration question and know the steps before you finish reading it. Practice with fresh numbers each time so you're learning the method, not memorizing one answer.