New Jersey Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every New Jersey 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 New Jersey Real Estate Commission does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. New Jersey 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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New Jersey Real Estate Math — Practice Questions & Answers
139 questions on Real Estate Math from the New Jersey real estate question bank. First 10 are free — sign up to unlock all 139.
Q1. A New Jersey home sells for $520,000. The total commission is 5%, split 50/50 between listing and selling brokerages. The listing agent receives 60% of their brokerage's share. How much does the listing agent earn?
Explanation
Total commission = $520,000 × 0.05 = $26,000. Listing brokerage share = $26,000 ÷ 2 = $13,000. Listing agent's share = $13,000 × 0.60 = $7,800.
Q2. A buyer purchases a $475,000 home with a 20% down payment. What is the loan amount, and if the interest rate is 7% annually, what is the first month's interest charge?
Explanation
Down payment = $475,000 × 0.20 = $95,000. Loan = $475,000 − $95,000 = $380,000. Monthly interest = $380,000 × (0.07 ÷ 12) = $380,000 × 0.005833 ≈ $2,217.
Q3. A property generates a monthly gross income of $3,500 and has a vacancy and collection loss rate of 5%. Annual operating expenses are $14,400. What is the annual net operating income (NOI)?
Explanation
Annual gross income = $3,500 × 12 = $42,000. Less vacancy (5%): $42,000 × 0.05 = $2,100. Effective gross income = $42,000 − $2,100 = $39,900. NOI = $39,900 − $14,400 = $25,500.
Q4. A seller's home is listed at $389,000. They receive an offer at 97% of the list price with a 6% commission. What is the seller's net proceeds before other closing costs?
Explanation
Offer price = $389,000 × 0.97 = $377,330. Commission = $377,330 × 0.06 = $22,639.80. Seller's net = $377,330 − $22,639.80 = $354,690.
Q5. A home is listed at $425,000. The buyer offers 96% of list price. What is the offer price?
Explanation
$425,000 × 0.96 = $408,000.
Q6. A broker earns a 5.5% commission on a $380,000 sale. What is the total commission?
Explanation
$380,000 × 0.055 = $20,900.
Q7. A buyer obtains a $320,000 mortgage at 6.5% annual interest. What is the first month's interest payment?
Explanation
Monthly interest = $320,000 × (0.065 ÷ 12) = $320,000 × 0.005417 ≈ $1,733.
Q8. A property sells for $550,000 with a 7% commission split 50/50 between listing and selling brokers. Each broker receives:
Explanation
Total commission = $550,000 × 0.07 = $38,500. Each broker receives $38,500 ÷ 2 = $19,250.
Q9. A property has a gross rent multiplier (GRM) of 140 and monthly gross rent of $2,800. What is the estimated value?
Explanation
Value = GRM × Monthly Rent = 140 × $2,800 = $392,000.
Q10. An investor purchases a property for $480,000 and sells it 3 years later for $540,000. What is the percentage gain?
Explanation
Gain = ($540,000 − $480,000) ÷ $480,000 = $60,000 ÷ $480,000 = 0.125 = 12.5%.
Q11. A property's assessed value is 85% of market value. If the tax rate is $2.50 per $100 of assessed value and the market value is $320,000, what is the annual property tax?
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