Math & Calculations Prep
Master the core real estate equations, test your knowledge with interactive simulators, and practice sample problems step-by-step.
Interactive Math Simulator
Essential Formula Cheat Sheet
Capitalization Rate
Measures rate of return on rental investments. Note that NOI does not subtract debt service.
Property Tax (Mills)
Local property tax assessed. Mill rate represents units of $1 tax per $1,000 value.
Acreage Conversion
Converts square footage of rectangular or triangular parcels to acreage.
Step-by-Step Practice Problems
A commercial property sold for $450,000. It produces an annual gross income of $62,000, and annual vacancy losses are 5%. The operating expenses total $18,900 per year. What is the capitalization rate (Cap Rate)?
An agent closed a home transaction representing the buyer. The home sold for $320,000 with a 6% total commission split 50/50 between the listing and buying brokerages. If the agent's contract with their managing broker is a 70/30 split, what is the agent's net commission payout?
An investor is purchasing a rectangular parcel of land that measures 250 feet wide by 522.7 feet deep. If land in this area sells for $12,000 per acre, what is the total cost of the parcel?
A property tax assessor values a home at $280,000. The county uses an assessment ratio of 50% of market value. If the county tax rate is 35 mills, what is the annual property tax bill?
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