Missouri Real Estate Exam Math Practice: Key Formulas and Problems

Missouri Real Estate Exam Math Practice

Math questions appear throughout the Missouri real estate exam. Expect 5–10 math-related questions across both sections. These are valuable points — candidates who are comfortable with real estate math have a meaningful advantage.

Commission Calculations

Basic commission formula: Commission = Sale Price x Rate

Example: A Missouri home sells for $245,000. The total commission rate is 6%. The listing broker and buyer's broker split 50/50. What does the listing salesperson earn if their split is 70/30?

Step 1: Total commission = 245,000 x 0.06 = $14,700 Step 2: Listing broker's share = 14,700 x 0.50 = $7,350 Step 3: Listing salesperson's share = 7,350 x 0.70 = $5,145

Answer: $5,145

Reverse commission: A seller wants to net $220,000 after a 6% commission. What must the property sell for?

Formula: Net = Sale Price x (1 - Rate) 220,000 = Sale Price x 0.94 Sale Price = 220,000 / 0.94 = $234,042.55

Proration Problems

Annual property taxes in Missouri are typically paid in arrears at the end of the year. Proration questions split the tax liability between buyer and seller.

Example: Annual taxes are $3,600. Closing is August 1. The seller owes taxes from January 1 through July 31. How much does the seller owe?

Step 1: Daily rate = 3,600 / 365 = $9.86/day Step 2: Days from Jan 1 through July 31 = 212 days (31+28+31+30+31+30+31) Step 3: Seller's share = 9.86 x 212 = $2,090.32

Some courses use a 360-day banker's year and 30-day months — follow your course method consistently.

Loan Calculations

Loan-to-value (LTV): LTV = Loan Amount / Appraised Value

Example: A buyer offers $280,000 on a home that appraises at $275,000. The lender will lend 80% of the appraised value. How much must the buyer bring to closing (down payment + gap)?

Loan = 275,000 x 0.80 = $220,000 Down payment = 275,000 - 220,000 = $55,000 Gap between loan and purchase price = 280,000 - 220,000 = $60,000 Buyer brings: $60,000 (covering both down payment on appraised value and the price-appraisal gap)

Monthly interest: If a borrower takes a $180,000 loan at 6.5% annual interest, what is the first month's interest?

180,000 x 0.065 / 12 = $975

Transfer Tax Calculation — Missouri Distinction

Missouri has NO state real estate transfer tax. This is a commonly tested fact. If an exam question asks you to calculate Missouri transfer tax, the answer is $0 at the state level (though local transfer taxes may exist in some jurisdictions — but for exam purposes, Missouri has no state transfer tax).

Area and Acreage

Area of a rectangle: Length x Width 1 acre = 43,560 square feet

Example: A rectangular lot is 100 feet by 200 feet. How many acres?

100 x 200 = 20,000 square feet 20,000 / 43,560 = 0.459 acres

Capitalization Rate (Commercial Properties)

Cap Rate = Net Operating Income / Value Value = NOI / Cap Rate

Example: A commercial property has a NOI of $36,000 and a cap rate of 8%. What is its estimated value?

Value = 36,000 / 0.08 = $450,000

Practice Strategy

Work at least 25–30 math problems before exam day. PSI provides a basic calculator at the testing center — you do not need to do these calculations by hand, but you must know which formula to apply. Speed and accuracy with formulas matter more than mental arithmetic.

[CARealestate.com/states/missouri](https://carealestate.com/states/missouri) includes math-focused practice questions alongside Missouri-specific law content.