Massachusetts Real Estate Exam Math Practice

Math questions account for approximately 10% of the national section of the Massachusetts real estate exam — roughly 8 questions. All math is formula-based. PSI provides an on-screen calculator. No personal calculator is allowed.

Essential Formulas

Commission Commission = Sale Price × Rate 5% commission on $520,000: $520,000 × 0.05 = $26,000

Commission Split Listing broker splits 50/50 with buyer's broker → each gets $13,000. If the listing agent receives 55% from their broker: $13,000 × 0.55 = $7,150

Proration (Property Taxes) Daily rate = Annual tax ÷ 360 (or 365 if specified) Seller's share = Daily rate × Number of days seller owned property through closing

Example: Annual taxes = $5,400. Closing September 10. Days Jan 1–Sept 10 = 250 days (8 months × 30 + 10). Daily rate: $5,400 ÷ 360 = $15/day Seller owes: $15 × 250 = $3,750

Loan-to-Value (LTV) LTV = Loan ÷ Appraised Value $320,000 loan on $400,000 home: $320,000 ÷ $400,000 = 80%

Down Payment Down Payment = Sale Price × Down Payment % 10% down on $450,000: $450,000 × 0.10 = $45,000 Loan = $450,000 − $45,000 = $405,000

Gross Rent Multiplier (GRM) GRM = Sale Price ÷ Monthly Rent $360,000 property rents for $2,400/month: $360,000 ÷ $2,400 = GRM of 150

Property Tax Tax = Assessed Value × Mill Rate Mill rate = tax per $1,000 of assessed value. Home assessed at $300,000, mill rate = 12: $300,000 × (12/1,000) = $3,600

Practice Problems

Problem 1: A home in Newton, MA sells for $750,000. The listing broker charges 5% and splits 50/50 with the buyer's broker. The listing agent receives 60% of the listing broker's share. What does the listing agent earn? *Total commission:* $750,000 × 0.05 = $37,500 *Listing broker's share:* $37,500 × 0.50 = $18,750 *Agent's share:* $18,750 × 0.60 = $11,250

Problem 2: Annual property taxes are $6,480. Closing is on August 15. Using a 360-day year, how much is prorated to the seller? Days Jan 1 through Aug 15: 7 months × 30 + 15 = 225 days Daily rate: $6,480 ÷ 360 = $18/day Seller's share: $18 × 225 = $4,050

Problem 3: A buyer makes an offer on a $600,000 condo. Their lender requires a maximum 80% LTV. What is the minimum down payment? Maximum loan: $600,000 × 0.80 = $480,000 Minimum down payment: $600,000 − $480,000 = $120,000

Problem 4: A property is assessed at $450,000. The mill rate is 13.5. What is the annual property tax? $450,000 × (13.5 ÷ 1,000) = $450,000 × 0.0135 = $6,075

Tips for Math Questions

Use the on-screen calculator for every calculation — never do math in your head under exam pressure.
Write out each step before calculating.
For proration, confirm whether the question uses 360 or 365 days.
Check your work by reversing the calculation.

More Massachusetts Math Practice

[CARealestate.com/states/massachusetts](https://carealestate.com/states/massachusetts) includes math practice questions with step-by-step solutions. 5 free questions — no signup needed.

Massachusetts Real Estate Exam Math Practice