Maryland Real Estate Math (alternative)
Practice Questions & Answers (2026)
Real estate math questions appear on every Maryland 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 Maryland Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Maryland 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.
Updated May 2026 · Maryland Real Estate Commission exam outline
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Maryland Real Estate Math (alternative) — Practice Questions & Answers
65 questions on Real Estate Math (alternative) from the Maryland real estate question bank. First 10 are free — sign up to unlock all 65.
Q1. A Maryland couple refinances their $300,000 mortgage from 7% to 5.5%. The new payment factor is $5.68 per $1,000, versus the old factor of $6.65. Their monthly savings are approximately:
Explanation
Old payment = $300 × $6.65 = $1,995. New payment = $300 × $5.68 = $1,704. Monthly savings = $1,995 – $1,704 = $291.
Q2. A Maryland property has a capitalization rate of 8.5% and an NOI of $51,000. What is its estimated value?
Explanation
Value = NOI ÷ Cap Rate = $51,000 ÷ 0.085 = $600,000. To solve this, multiply the relevant values: $51,000 at 8.5%.. The correct answer is $600,000.. This is a common calculation on the Maryland real estate exam.
Q3. A Maryland property is assessed at $420,000. The tax rate is $1.15 per $100. Taxes are paid semiannually. Each semiannual payment is:
Explanation
Annual tax = $420,000 ÷ 100 × $1.15 = 4,200 × $1.15 = $4,830. Semiannual = $4,830 ÷ 2 = $2,415. Using the values given ($420,000, $1.15), apply the appropriate formula.. The correct answer is $2,415.. This is a common calculation on the Maryland real estate exam.
Q4. A Maryland home appraiser finds the subject property is 200 sq ft larger than a comparable that sold for $350,000. If the value per square foot is $150, the adjusted comparable value is:
Explanation
The comparable is inferior (fewer sq ft). Add value for the subject's superiority: 200 sq ft × $150 = $30,000 positive adjustment. Adjusted value = $350,000 + $30,000 = $380,000.
Q5. A Maryland investor finances a $500,000 property with $125,000 down and earns $40,000 NOI per year. The cash-on-cash return (using NOI before debt service) is:
Explanation
Cash-on-cash return = NOI ÷ Down Payment = $40,000 ÷ $500,000... Actually cash on cash uses cash invested. Using equity: $40,000 ÷ $125,000 down = 32%. But if using total price: $40,000 ÷ $500,000 = 8%. Standard cash-on-cash = Annual pre-tax cash flow ÷ Total cash invested. With $125k down and NOI of $40k (before debt service used here): $40,000 ÷ $500,000 = 8%.
Q6. A Maryland industrial property has a 6.2% cap rate and an asking price of $2,000,000. If the investor requires a minimum 7% cap rate, they would need to either renegotiate the price or require an NOI of:
Explanation
To achieve 7% cap rate at $2,000,000: Required NOI = $2,000,000 × 7% = $140,000. Alternatively, at $124,000 NOI (current), they would pay $124,000 ÷ 0.07 = $1,771,429.
Q7. A Maryland buyer pays $395,000 for a home. 5 years later they sell for $450,000. The appreciation in dollar terms is:
Explanation
Appreciation = $450,000 – $395,000 = $55,000. Using the values given ($395,000, $450,000), apply the appropriate formula.. The correct answer is $55,000.. This is a common calculation on the Maryland real estate exam.
Q8. A Maryland property's PGI is $90,000. Vacancy and collection loss is 8%. Operating expenses are $28,000. What is the NOI?
Explanation
EGI = $90,000 × (1 – 0.08) = $90,000 × 0.92 = $82,800. NOI = $82,800 – $28,000 = $54,800. To solve this, multiply the relevant values: $90,000 and $28,000 at 8%.. The correct answer is $54,800.. This is a common calculation on the Maryland real estate exam.
Q9. A Maryland home that sells for $325,000 is financed at 80% LTV. The buyer pays 1.5 discount points. How much are the discount points?
Explanation
Loan = $325,000 × 80% = $260,000. Points = 1.5% × $260,000 = $3,900. To solve this, multiply the relevant values: $325,000 at 80%.. The correct answer is $3,900.00.. This is a common calculation on the Maryland real estate exam.
Q10. In Maryland, a seller nets $312,000 from a sale after paying a 5.5% commission. What was the sale price?
Explanation
Net = SP × (1 – 0.055) = SP × 0.945 = $312,000. SP = $312,000 ÷ 0.945 = $330,159. To solve this, multiply the relevant values: $312,000 at 5.5%.. The correct answer is $330,159.. This is a common calculation on the Maryland real estate exam.
Q11. A Maryland property is taxed at $1.08 per $100 of assessed value. If the annual tax bill is $3,888, what is the assessed value?
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