Iowa Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Iowa 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 Iowa Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Iowa 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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Iowa Real Estate Math — Practice Questions & Answers
164 questions on Real Estate Math from the Iowa real estate question bank. First 10 are free — sign up to unlock all 164.
Q1. A property in Iowa sells for $215,000. The seller pays a 6% commission. How much commission is paid?
Explanation
Commission = Sale Price × Commission Rate. $215,000 × 0.06 = $12,900.
Q2. A rectangular parcel of land measures 330 feet by 660 feet. How many acres is this? (1 acre = 43,560 sq ft)
Explanation
Area in sq ft = 330 × 660 = 217,800 sq ft. Acres = 217,800 ÷ 43,560 = 5 acres. (Note: 5 acres = 1/8 of a mile square, a common land measurement.)
Q3. A buyer obtains a 30-year $180,000 mortgage at 6.5% annual interest. The monthly payment (principal and interest) is $1,138.24. After the first payment, what is the approximate remaining loan balance?
Explanation
First month's interest = $180,000 × (6.5% ÷ 12) = $180,000 × 0.005417 = $975. Principal reduction = $1,138.24 − $975 = $163.24. Remaining balance = $180,000 − $163.24 = $179,836.76.
Q4. An investment property in Iowa has a net operating income of $22,500 and was purchased for $375,000. What is the capitalization rate?
Explanation
Cap Rate = NOI ÷ Purchase Price. $22,500 ÷ $375,000 = 0.06 = 6%.
Q5. A salesperson earns 60% of the commission paid to the brokerage. The brokerage receives a 5% commission on a $310,000 sale. How much does the salesperson earn?
Explanation
Brokerage commission = $310,000 × 0.05 = $15,500. Salesperson share = $15,500 × 0.60 = $9,300.
Q6. A home sells for $270,000, which is 108% of its assessed value. What is the assessed value?
Explanation
Assessed Value = Sale Price ÷ 1.08 = $270,000 ÷ 1.08 = $250,000.
Q7. An Iowa homeowner's property has a taxable assessed value of $180,000. The tax rate is 20 mills ($20 per $1,000 of assessed value). What is the annual property tax?
Explanation
Property Tax = Assessed Value ÷ 1,000 × Mill Rate = $180,000 ÷ 1,000 × 20 = $3,600.
Q8. A buyer agrees to purchase a lot that is 150 feet wide and 200 feet deep at a price of $3 per square foot. What is the total purchase price?
Explanation
Area = 150 × 200 = 30,000 sq ft. Purchase Price = 30,000 × $3 = $90,000.
Q9. An investor purchases a rental property for $320,000 and finances 75% of the purchase price. How much is the down payment?
Explanation
Down payment = Purchase Price × (1 − LTV). LTV = 75%, so down payment percentage = 25%. Down payment = $320,000 × 0.25 = $80,000.
Q10. A property manager charges a management fee of 8% of collected rents. In January, the property collected $9,500 in rent. What is the management fee for January?
Explanation
Management fee = Collected rents × Fee rate = $9,500 × 0.08 = $760.
Q11. A homeowner wants to net $210,000 after paying a 6% commission. At what price must the home sell?
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