Minnesota Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Minnesota 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 Minnesota Department of Commerce does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Minnesota 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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Minnesota Real Estate Math — Practice Questions & Answers
127 questions on Real Estate Math from the Minnesota real estate question bank. First 10 are free — sign up to unlock all 127.
Q1. A Minnesota property has a NOI of $54,000 and a cap rate of 6%. What is the estimated property value?
Explanation
Value = NOI ÷ Cap rate = $54,000 ÷ 0.06 = $900,000.
Q2. A salesperson earned $14,400 representing 60% of the company's side of a 6% commission. What was the sales price of the property?
Explanation
Agent's commission = $14,400. If this is 60% of the company's side, company's share = $14,400 ÷ 0.60 = $24,000. If company's side is 50% of total commission, total commission = $24,000 ÷ 0.50 = $48,000. But typically listing and selling sides split equally. Total commission at 6%: Sale price = $24,000 ÷ 0.06 = $400,000. (Here the company's side equals the total commission earned by that brokerage, which is $24,000. At 6% on sale price: $24,000 ÷ 0.06 = $400,000.)
Q3. A buyer makes an earnest money deposit of 2% on a $450,000 home. How much is the earnest money deposit?
Explanation
Earnest money = $450,000 × 2% = $450,000 × 0.02 = $9,000.
Q4. A home is listed at $385,000 and sells for 97% of list price. The seller pays a 5.5% commission on the sale price. What is the commission?
Explanation
Sale price = $385,000 × 97% = $373,450. Commission = $373,450 × 5.5% = $373,450 × 0.055 = $20,539.75, approximately $20,540.
Q5. A Minnesota investment property is purchased for $500,000. The down payment is 25%. What is the loan amount?
Explanation
Down payment = $500,000 × 25% = $125,000. Loan amount = $500,000 - $125,000 = $375,000.
Q6. A property sells for $260,000. Transfer tax in Minnesota is $1.65 per $500 of purchase price. What is the transfer tax?
Explanation
Number of $500 units = $260,000 ÷ $500 = 520. Transfer tax = 520 × $1.65 = $858.
Q7. A rectangular lot is 150 feet wide and 200 feet deep. How many square feet does it contain?
Explanation
Area = 150 × 200 = 30,000 square feet.
Q8. A home appraised at $340,000 sells for 103% of appraised value. What is the sale price?
Explanation
Sale price = $340,000 × 1.03 = $350,200.
Q9. A seller nets $285,000 after paying a 6% commission on the sale price. What was the sale price?
Explanation
Net = Sale price × (1 - 0.06) = Sale price × 0.94. Sale price = $285,000 ÷ 0.94 = $303,191.49, approximately $303,191.
Q10. A Minnesota property is assessed at 85% of its market value of $320,000. The tax rate is $22 per $1,000 of assessed value. What is the annual property tax?
Explanation
Assessed value = $320,000 × 85% = $272,000. Tax = $272,000 ÷ $1,000 × $22 = 272 × $22 = $5,984.
Q11. A buyer obtains a $350,000 mortgage at 7% interest. What is the monthly interest portion of the first payment?
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