Iowa Real Estate Exam Math Practice

Math questions appear on both sections of the Iowa PSI real estate exam. Mastering a small set of formulas and practicing with realistic Iowa-priced homes will prepare you for the quantitative questions you'll see on test day.

Core Formulas

Commission > Commission = Sale Price × Commission Rate

Net to Seller > Net = Sale Price − Commissions − Closing Costs − Mortgage Payoff

Loan-to-Value (LTV) > LTV = Loan Amount ÷ Purchase Price

Proration (360-day year) > Daily rate = Annual amount ÷ 360 > Proration = Daily rate × Days elapsed

Assessed Value to Market Value > Market Value = Assessed Value ÷ Assessment Ratio

Practice Problems

Problem 1 — Commission Calculation

An Iowa home sells for $225,000. The listing agreement calls for a 5.5% commission, split equally between listing and buyer's brokers. The listing salesperson earns 60% of the listing broker's share. How much does the listing salesperson earn?

*Step 1:* $225,000 × 5.5% = $12,375 total commission *Step 2:* $12,375 ÷ 2 = $6,187.50 to listing broker *Step 3:* $6,187.50 × 60% = $3,712.50

Problem 2 — Property Tax Proration

Annual taxes are $3,600. Closing is March 15 (using 360-day year: 2 months + 15 days = 75 days). Taxes paid in arrears — seller owes buyer the prorated amount.

*Step 1:* $3,600 ÷ 360 = $10.00/day *Step 2:* $10.00 × 75 = $750 (seller credit to buyer)

Problem 3 — Net Proceeds

An Iowa seller's home sells for $310,000. They owe $185,000 on their mortgage. Commission is 6%, and other closing costs total $5,200. What are the seller's net proceeds?

*Step 1:* Commission = $310,000 × 6% = $18,600 *Step 2:* Net = $310,000 − $18,600 − $5,200 − $185,000 = $101,200

Problem 4 — Loan-to-Value

A buyer puts 15% down on a $275,000 Iowa home. What is the LTV ratio and loan amount?

*Step 1:* Down payment = $275,000 × 15% = $41,250 *Step 2:* Loan = $275,000 − $41,250 = $233,750 *Step 3:* LTV = $233,750 ÷ $275,000 = 85%

Problem 5 — Assessed Value

Iowa assesses residential property at 54.65% of market value. A home's assessed value is $131,160. What is its approximate market value?

*Market Value = $131,160 ÷ 0.5465 = $240,000*

Iowa CE Math Note

Iowa requires 36 CE hours per 3-year cycle. This is often tested as: if a licensee completes 12 hours per year, are they compliant? Yes — 12 × 3 = 36. Know the total cycle number (36) and the cycle length (3 years).

Tips for Iowa Exam Math

• PSI provides an on-screen calculator — use it
• Double-check whether a question asks for agent share vs. broker share
• Re-read "net proceeds" questions carefully — mortgage payoff is always subtracted
• Proration problems specify whether taxes are paid in advance or arrears — this changes who gets the credit

More practice at [CARealestate.com/states/iowa](https://carealestate.com/states/iowa).