California Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every California real estate exam and test a focused set of calculations: commission splits, prorations (property tax, rent, interest), loan-to-value ratios, appreciation and depreciation, and area calculations. The California Department of Real Estate (DRE) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. California candidates consistently lose points on proration questions because they apply the wrong day-count convention (360-day vs. 365-day year) or miscalculate the seller's vs. buyer's share. Work through every problem in this section until you can solve each type without hesitation.
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California Real Estate Math — Practice Questions & Answers
133 questions on Real Estate Math from the California real estate question bank. First 10 are free — sign up to unlock all 133.
Q1. A home sells for $450,000. The commission rate is 6%. How much is the total commission?
Explanation
$450,000 × 0.06 = $27,000 total commission.
Q2. A listing agent and buyer's agent split a 6% commission 50/50 on a $380,000 sale. How much does each agent's broker receive?
Explanation
$380,000 × 0.06 = $22,800 total. Split 50/50 = $11,400 per side.
Q3. A property has a net operating income (NOI) of $36,000 per year. If the cap rate is 6%, what is the property's value?
Explanation
Value = NOI ÷ Cap Rate = $36,000 ÷ 0.06 = $600,000.
Q4. A buyer puts 20% down on a $500,000 home. What is the loan amount?
Explanation
Down payment = $500,000 × 0.20 = $100,000. Loan amount = $500,000 - $100,000 = $400,000.
Q5. A rectangular lot is 150 feet wide and 200 feet deep. What is its area in acres? (1 acre = 43,560 sq ft)
Explanation
Area = 150 × 200 = 30,000 sq ft. 30,000 ÷ 43,560 = 0.689 acres ≈ 0.69 acres.
Q6. A home was purchased for $320,000 and sold for $410,000. What was the percentage of appreciation?
Explanation
Appreciation % = (Sale Price - Purchase Price) ÷ Purchase Price × 100 = ($410,000 - $320,000) ÷ $320,000 × 100 = $90,000 ÷ $320,000 × 100 = 28.1%.
Q7. An agent earns 60% of the commission her broker receives. The total commission on a $520,000 sale at 5% is split 50/50 between listing and buyer's broker. How much does the agent earn?
Explanation
Total commission: $520,000 × 0.05 = $26,000. Buyer's broker half: $13,000. Agent's 60%: $13,000 × 0.60 = $7,800.
Q8. A property's annual NOI is $48,000 and it sold at an 8% cap rate. What was the sale price?
Explanation
Value = NOI ÷ Cap Rate = $48,000 ÷ 0.08 = $600,000.
Q9. A seller wants to net $280,000 after paying a 6% commission. What must the property sell for?
Explanation
Net = Sale Price × (1 - 0.06). Sale Price = $280,000 ÷ 0.94 = $297,872.
Q10. A lot measures 1.5 acres. How many square feet is that?
Explanation
1 acre = 43,560 sq ft. 1.5 acres × 43,560 = 65,340 sq ft.
Q11. A property generates $4,200/month in rent. Using a GRM of 160, what is the estimated value?
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