Indiana Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Indiana 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 Indiana Professional Licensing Agency does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Indiana 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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Indiana Real Estate Math — Practice Questions & Answers
177 questions on Real Estate Math from the Indiana real estate question bank. First 10 are free — sign up to unlock all 177.
Q1. A buyer in Indiana wants to buy a home priced at $285,000 with a 5% down payment. What is the loan amount?
Explanation
Down payment = $285,000 × 5% = $14,250. Loan amount = $285,000 − $14,250 = $270,750.
Q2. A property in Indiana is assessed at $175,000. The local tax rate is $2.40 per $100 of assessed value. What is the annual property tax?
Explanation
Annual property tax = (Assessed Value ÷ $100) × Tax Rate. ($175,000 ÷ $100) × $2.40 = 1,750 × $2.40 = $4,200.
Q3. A seller wants to net $250,000 after paying a 5.5% commission. What must the property sell for?
Explanation
The seller nets the sale price minus commission. Net = Sale Price × (1 − Commission Rate). $250,000 = Sale Price × (1 − 0.055) = Sale Price × 0.945. Sale Price = $250,000 ÷ 0.945 ≈ $264,550.
Q4. An investor purchases a rental property for $350,000. The property generates $36,000 per year in gross rent and $14,400 in annual expenses. What is the capitalization rate?
Explanation
NOI = Gross Rent − Expenses = $36,000 − $14,400 = $21,600. Cap Rate = NOI ÷ Purchase Price = $21,600 ÷ $350,000 ≈ 6.17%.
Q5. A property sells for $275,000. The commission rate is 6%. The listing broker and buyer's broker split the commission equally. How much does the listing broker receive?
Explanation
Total commission = $275,000 × 6% = $16,500. Each broker receives half: $16,500 ÷ 2 = $8,250.
Q6. A buyer makes a 15% down payment on a $320,000 home. What is the loan amount?
Explanation
Down payment = $320,000 × 15% = $48,000. Loan amount = $320,000 − $48,000 = $272,000.
Q7. A property generates annual gross rent of $42,000, has a 5% vacancy rate, and operating expenses of $15,000. What is the NOI?
Explanation
Effective gross income = $42,000 × (1 − 0.05) = $39,900. NOI = $39,900 − $15,000 = $24,900.
Q8. A home was purchased for $200,000 and sold for $245,000. What is the percentage gain?
Explanation
Gain = $245,000 − $200,000 = $45,000. Percentage gain = $45,000 ÷ $200,000 = 22.5%.
Q9. A property has an assessed value of $180,000. The tax rate is $2.50 per $100 of assessed value. What is the annual property tax?
Explanation
Tax = ($180,000 ÷ 100) × $2.50 = 1,800 × $2.50 = $4,500.
Q10. An investor pays $400,000 for a property with an annual NOI of $28,000. What is the capitalization rate?
Explanation
Cap rate = NOI ÷ Purchase price = $28,000 ÷ $400,000 = 0.07 = 7.0%.
Q11. A rectangular lot measures 150 feet by 200 feet. What is the area in acres? (1 acre = 43,560 sq ft)
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