Kentucky Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Kentucky 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 Kentucky Real Estate Commission (KREC) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Kentucky 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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Kentucky Real Estate Math — Practice Questions & Answers
160 questions on Real Estate Math from the Kentucky real estate question bank. First 10 are free — sign up to unlock all 160.
Q1. A Kentucky home sells for $350,000. The seller pays a 5.5% commission. How much does the seller net after commission?
Explanation
Commission = $350,000 × 0.055 = $19,250. Net to seller = $350,000 − $19,250 = $330,750.
Q2. A property has a net operating income (NOI) of $24,000 and a cap rate of 8%. What is the estimated value?
Explanation
Value = NOI ÷ Cap rate = $24,000 ÷ 0.08 = $300,000.
Q3. A buyer purchases a home for $240,000 and makes a 10% down payment. What is the loan amount?
Explanation
Down payment = $240,000 × 0.10 = $24,000. Loan amount = $240,000 − $24,000 = $216,000.
Q4. A listing agent earns 60% of the total 6% commission on a $180,000 sale. How much does the listing agent earn?
Explanation
Total commission = $180,000 × 0.06 = $10,800. Listing agent's share = $10,800 × 0.60 = $6,480.
Q5. A property sells for $275,000. The buyer puts 20% down and finances the rest. What is the loan amount?
Explanation
Down payment = $275,000 × 0.20 = $55,000. Loan amount = $275,000 − $55,000 = $220,000.
Q6. An agent receives a 6% commission on a $320,000 sale. The listing broker and selling broker split the commission 50/50. How much does each broker receive?
Explanation
Total commission = $320,000 × 0.06 = $19,200. Each broker's share = $19,200 ÷ 2 = $9,600.
Q7. A home is purchased for $200,000. After two years, the owner sells it for $230,000. What is the percentage increase in value?
Explanation
Increase = $230,000 − $200,000 = $30,000. Percentage increase = $30,000 ÷ $200,000 = 0.15 = 15%.
Q8. A property generates $3,000 in monthly rent. If the gross rent multiplier (GRM) for the area is 120, what is the estimated value?
Explanation
Estimated Value = GRM × Gross Monthly Rent = 120 × $3,000 = $360,000.
Q9. A rectangular lot measures 200 feet wide by 300 feet deep. How many square feet does it contain?
Explanation
Area = Width × Depth = 200 × 300 = 60,000 square feet.
Q10. A buyer obtains a $150,000 mortgage at 6% annual interest. What is the annual interest in the first year (interest-only calculation)?
Explanation
Annual interest = $150,000 × 0.06 = $9,000.
Q11. A property's assessed value is $180,000 and the tax rate is 15 mills. What is the annual property tax?
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