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NY Real Estate Math Cheat Sheet

Every formula tested on the New York Salesperson exam — with worked examples. Print, save, study.

What’s inside
Commission Co-Broker Split Discount Points Loan-to-Value Down Payment Prorations Area & Acres Cap Rate Gross Rent Multiplier Mill Rate Mortgage Payment T-Method

Educational use onlyNY Real Estate Prep is an independent study tool — not affiliated with the New York Department of State or any licensing authority. This material is not legal, tax, or financial advice. Always verify current exam policies and licensing requirements directly with the NY DOS at dos.ny.gov.

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Commission

1. Commission

Commission = Sale Price × Commission Rate

Example: Home sells for $500,000 with a 6% total commission. Total commission = $500,000 × 0.06 = $30,000.

Commission Split

2. Co-Broker / Agent Split

Agent’s Take = Total Commission × Brokerage Split × Agent Split

Example: Total commission $30,000. Brokerage gets 50% of the deal ($15,000), agent gets 70% of that split. Agent earns $15,000 × 0.70 = $10,500.

Finance

3. Discount Points

Each Point = 1% of Loan Amount

Example: A $400,000 loan with 2 discount points. Cost = $400,000 × 0.02 = $8,000. (Points are paid at closing to lower the interest rate.)

Finance

4. Loan-to-Value Ratio (LTV)

LTV = Loan Amount ÷ Property Value

Example: $360,000 loan on a $400,000 property. LTV = 360,000 / 400,000 = 90%. (LTVs above 80% usually require PMI on conventional loans.)

Finance

5. Down Payment

Down Payment = Purchase Price × Down Payment %

Example: 20% down on $500,000 = $500,000 × 0.20 = $100,000. Loan amount = $500,000 − $100,000 = $400,000.

Closing Math

6. Prorations (365-day method)

Daily Rate = Annual Amount ÷ 365
Proration = Daily Rate × Days

Example: Annual property tax $4,380. Daily rate = $4,380 / 365 = $12/day. Seller owes 90 days = $12 × 90 = $1,080.

Some questions use the 360-day “banker’s year” — read the question carefully.

Area & Measurement

7. Area & Acres — Essential Conversions

1 Acre = 43,560 sq ft
1 Sq Mile = 640 acres
Rectangle Area = Length × Width
Triangle Area = (Base × Height) ÷ 2

Example: A lot is 100 ft × 200 ft. Area = 100 × 200 = 20,000 sq ft = 20,000 / 43,560 = 0.46 acres.

Investment

8. Capitalization Rate (Cap Rate)

Cap Rate = Net Operating Income (NOI) ÷ Property Value
(or rearranged: Value = NOI ÷ Cap Rate)

Example: A building generates $60,000 NOI and sells for $750,000. Cap rate = 60,000 / 750,000 = 8%.
To value a property: NOI of $80,000 at an 8% cap rate → 80,000 / 0.08 = $1,000,000.

Investment

9. Gross Rent Multiplier (GRM)

GRM = Sale Price ÷ Monthly Gross Rent
(Annual version: GIM = Sale Price ÷ Annual Gross Income)

Example: $300,000 property rents for $2,000/month. GRM = 300,000 / 2,000 = 150. To value a similar property renting at $2,500/month: $2,500 × 150 = $375,000.

Property Tax

10. Mill Rate (Property Tax)

Tax = Assessed Value × Mill Rate ÷ 1,000
(1 mill = $1 per $1,000 of assessed value)

Example: Assessed value $200,000, mill rate 25. Annual tax = 200,000 × 25 / 1,000 = $5,000.

Finance

11. Monthly Mortgage Payment (PITI components)

PITI = Principal + Interest + Taxes + Insurance
Simple-interest portion: Interest = Loan Balance × Rate × Time

First-month interest example: $300,000 loan at 6% annual rate.
Monthly interest = $300,000 × 0.06 / 12 = $1,500.
(Use payment-per-thousand tables on the exam when asked for the full monthly payment.)

Universal Math Tool

12. The T-Method (works on nearly every problem)

Whole × Rate = Part
Part ÷ Rate = Whole
Part ÷ Whole = Rate

Example: A home sells for $400,000 with a $24,000 commission. What’s the commission rate?
Rate = Part / Whole = 24,000 / 400,000 = 6%.

Draw a T on your scratch paper: cover the value you’re solving for and the operation reveals itself.

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Studying tip

On exam day you’ll get a basic four-function calculator at the testing center (no graphing or financial calculators allowed by NY DOS). Practice these problems using only basic arithmetic — your scratch paper and a basic calculator. Don’t rely on shortcuts your phone can do.

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Math formula sheet, 161-term glossary, New York quick reference, 4-week study plan and exam day checklist. No email required.

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Go deeper on each formula

Each page below works the formula end to end — step-by-step method, two worked examples, a practice question with the answer, and the mistakes that cost marks.

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