Hawaii Practice TestReal Estate Math

Hawaii Real Estate Math
Practice Questions & Answers (2026)

Real estate math questions appear on every Hawaii 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 Hawaii Real Estate Branch does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Hawaii 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.

Practice Questions

Hawaii Real Estate Math — Practice Questions & Answers

219 questions on Real Estate Math from the Hawaii real estate question bank. First 10 are free — sign up to unlock all 219.

Q1. A property in Hawaii sells for $850,000. The commission rate is 5%. How much commission is earned?

A.$37,500
B.$42,500
C.$45,000
D.$85,000

Explanation

Commission = Sale Price × Commission Rate. $850,000 × 0.05 = $42,500. The total commission earned on this sale is $42,500.

Q2. A buyer obtains a 30-year mortgage for $600,000 at an annual interest rate of 6%. What is the first month's interest payment?

A.$2,500
B.$3,000
C.$3,600
D.$4,000

Explanation

Monthly interest = Loan Balance × (Annual Rate ÷ 12). $600,000 × (0.06 ÷ 12) = $600,000 × 0.005 = $3,000. The first month's interest payment is $3,000.

Q3. A property has a net operating income (NOI) of $54,000. If the capitalization rate is 6%, what is the estimated value of the property?

A.$700,000
B.$800,000
C.$900,000
D.$1,000,000

Explanation

Value = NOI ÷ Cap Rate. $54,000 ÷ 0.06 = $900,000. The estimated property value using income capitalization is $900,000.

Q4. A rectangular lot measures 120 feet wide by 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)

A.0.45 acres
B.0.55 acres
C.0.60 acres
D.0.65 acres

Explanation

Step 1: Area in sq ft = 120 × 200 = 24,000 sq ft. Step 2: Convert to acres: 24,000 ÷ 43,560 ≈ 0.551 acres, which rounds to approximately 0.55 acres.

Q5. A Hawaii property sells for $875,000 with a 5.5% commission. What is the total commission?

A.$43,750
B.$48,125
C.$52,500
D.$55,000

Explanation

Total commission = $875,000 × 0.055 = $48,125.

Q6. A property's NOI is $84,000 and the cap rate is 6%. What is the estimated value using the income approach?

A.$1,200,000
B.$1,400,000
C.$1,500,000
D.$1,600,000

Explanation

Value = NOI ÷ Cap Rate = $84,000 ÷ 0.06 = $1,400,000.

Q7. A buyer purchases a Hawaii condo for $620,000 and makes a 20% down payment. What is the loan amount?

A.$124,000
B.$248,000
C.$496,000
D.$520,000

Explanation

Down payment = $620,000 × 0.20 = $124,000. Loan amount = $620,000 − $124,000 = $496,000.

Q8. A Hawaii salesperson earns 60% of the gross commission. If the property sold for $780,000 at a 5% commission rate, how much does the salesperson earn?

A.$19,500
B.$23,400
C.$25,000
D.$39,000

Explanation

Gross commission = $780,000 × 0.05 = $39,000. Salesperson share = $39,000 × 0.60 = $23,400.

Q9. A property was purchased for $500,000 and sold 3 years later for $620,000. What is the percentage appreciation?

A.18%
B.22%
C.24%
D.26%

Explanation

Appreciation = ($620,000 − $500,000) ÷ $500,000 = $120,000 ÷ $500,000 = 0.24 = 24%.

Q10. A Hawaii landlord collects monthly rent of $2,800. What is the annual gross rental income?

A.$28,000
B.$30,400
C.$33,600
D.$36,000

Explanation

Annual gross income = $2,800 × 12 = $33,600.

Q11. A rectangular lot in Hawaii is 90 feet wide and 150 feet deep. What is its area in square feet?

A.9,000 sq ft
B.12,000 sq ft
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