Oregon Real Estate Exam Math: Practice Problems and Formulas
Master the math questions on the Oregon broker exam with step-by-step practice problems covering commissions, prorations, transfer tax, and capitalization rates.
How Much Math Is on the Oregon Exam?
Math questions make up roughly 10–15% of the 130-question Oregon broker exam. That is approximately 13–20 questions, a significant enough share that weak math skills can drop you below the 75% passing threshold on their own.
The good news: every math problem on the real estate exam uses the same formulas applied in different scenarios. Once you memorize the core formulas and practice applying them, the math section becomes predictable.
Essential Formulas
Write these down and memorize them before your exam:
Commission: Commission = Sale Price x Commission Rate
Loan-to-Value: LTV = Loan Amount / Property Value
Debt-to-Income: DTI = Monthly Debt Payments / Gross Monthly Income
Capitalization Rate: Cap Rate = Net Operating Income / Property Value
Proration (daily rate): Daily Rate = Annual Amount / 365
Appreciation/Depreciation: New Value = Original Value x (1 + Rate)
Transfer Tax (Oregon, per county): Varies — know the per-$1,000 or per-$500 rate given in the problem.
Practice Problem 1 — Commission Split
A home sells for $485,000. The listing broker charges a 5.5% commission split equally between listing and buyer's broker. The buyer's agent receives 60% of the buyer's broker's share. How much does the buyer's agent earn?
Step 1: Total commission = 485,000 x 0.055 = 26,675
Step 2: Buyer's broker share = 26,675 / 2 = 13,337.50
Step 3: Buyer's agent share = 13,337.50 x 0.60 = 8,002.50
Answer: $8,002.50
Practice Problem 2 — Proration
A seller has prepaid annual property taxes of $4,380. Closing is on September 1. How much does the seller receive as a credit at closing (using a 365-day year, January 1 to December 31)?
Step 1: Daily tax rate = 4,380 / 365 = 12.00 per day
Step 2: Days remaining after September 1 through December 31 = 122 days
Step 3: Seller credit = 12.00 x 122 = 1,464
Answer: Seller receives a $1,464 credit
Practice Problem 3 — Capitalization Rate
An investor buys a small apartment building for $820,000. Annual gross rents are $96,000. Annual operating expenses are $34,000. What is the cap rate?
Step 1: NOI = 96,000 - 34,000 = 62,000
Step 2: Cap Rate = 62,000 / 820,000 = 0.0756 = 7.56%
Answer: 7.56%
Practice Problem 4 — Loan-to-Value
A buyer purchases a home for $390,000 and makes a 10% down payment. What is the loan amount and LTV?
Step 1: Down payment = 390,000 x 0.10 = 39,000
Step 2: Loan amount = 390,000 - 39,000 = 351,000
Step 3: LTV = 351,000 / 390,000 = 0.90 = 90%
Answer: Loan = $351,000; LTV = 90%
Practice Problem 5 — Depreciation (Cost Approach)
A building has a replacement cost of $310,000. It is 15 years old with a 50-year economic life. Land value is $75,000. What is the indicated value using the cost approach?
Step 1: Depreciation rate = 15 / 50 = 0.30 = 30%
Step 2: Accrued depreciation = 310,000 x 0.30 = 93,000
Step 3: Depreciated building value = 310,000 - 93,000 = 217,000
Step 4: Indicated value = 217,000 + 75,000 = 292,000
Answer: $292,000
Oregon Transfer Tax Note
Oregon's Documentary Transfer Tax varies by county. Exam problems will typically provide the rate and ask you to calculate the tax. Always check whether the rate is per $500 or per $1,000 and whether the total or taxable consideration is stated.
Exam Day Math Tips
- Bring an approved basic calculator (PSI allows calculators; check the candidate handbook for approved types)
- Show your work on scratch paper — intermediate steps prevent arithmetic errors
- Double-check unit conversions (annual to monthly, percent to decimal)
- Skip difficult math problems and return to them — do not lose time on one question
For more Oregon exam resources, visit [CARealestate.com/states/oregon](https://carealestate.com/states/oregon).
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