Montana Real Estate Exam Math: Commission, Proration & Cap Rate

Math questions appear on Montana's 120-question exam. Here are the key formulas with worked examples.

Commission **Example**: Ranch sells for $1,200,000. Commission 4%, split 50/50. Listing agent earns 55%. - Total: $1,200,000 x 0.04 = $48,000; Listing side: $24,000 - Agent: $24,000 x 0.55 = **$13,200**

Proration (360-day year) **Example**: Taxes $2,880. Closing May 31. - Daily: $2,880 / 360 = $8/day; Seller's days (Jan-May): 150 - Seller credit to buyer: 150 x $8 = **$1,200**

Cap Rate **Example**: Rental cabin generates $18,000 NOI. Cap rate 7%. - Value = $18,000 / 0.07 = **$257,143**

Net to Seller **Example**: Seller wants $480,000 net after 4% commission. - Sale Price = $480,000 / 0.96 = **$500,000**

LTV **Example**: $340,000 home, $51,000 down. Loan: $289,000. - LTV: $289,000 / $340,000 = **85%** — PMI required

[Practice Montana math at CARealestate.com/states/montana](https://carealestate.com/states/montana)