What is tested in Real Estate Calculations?
| Official PSI area | Real Estate Calculations |
|---|---|
| Exam portion | National portion |
| Published weight | 7% of the 100-question national portion |
| Published branches | 3 |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI provides an online calculator during the exam and prohibits handheld calculators. The outline does not publish a formula sheet, so learn the relationship behind each formula and label the units before calculating.
Why this area matters
Math becomes manageable when you name the target, base, rate, time period, and debit or credit before touching the calculator. Most errors are setup errors, not arithmetic errors.
How much math is on the Georgia real estate exam?
| Published group | Official weight | What can be claimed |
|---|---|---|
| National Real Estate Calculations | 7% of 100 scored national questions | About seven scored national questions by blueprint weight |
| Georgia Finance and Closing | 15 of 52 scored Georgia questions | The group includes finance and closing law as well as calculations |
| Combined math total | Not published | No exact combined number is supportable from PSI's public outline |
Complete official content outline
These are all branches named in PSI's current salesperson outline. The teaching points below unpack each branch so you can move from recognition to application.
A. Calculations for transactions
Build the closing statement from the party, item, period, and direction of money.
- Seller net proceeds
- Buyer funds needed at closing
- Real-property tax and other prorations
- Real-property transfer fees
- PITI estimate from loan rate and term
B. General concepts
Rearrange a small set of ratios instead of memorizing disconnected equations.
- Equity
- Rate of return and capitalization rate
- Loan-to-value ratio
- Discount points
- Loan origination fees
Georgia calculation bridge
Keep the taxable base and statutory rounding rule visible.
- Georgia transfer tax based on taxable consideration
- Georgia intangible recording tax based on the secured note
- Forty percent assessed value before applying millage
- Contract-directed proration method and day convention
High-value distinctions and exam traps
Use these after the complete lesson sequence. Each comparison puts easily confused terms into the same decision table, then tests the controlling fact in a new scenario.
Complete math lesson sequence
Every roadmap calculation has one canonical answer page. Each lesson maps the official topic, teaches the formula and variables, adds a Georgia distinction, works two examples, exposes common traps, and ends with explained questions and mastery tracking.
Math lesson 231
Real Estate Commission and Seller-Net Calculations
Commission = sale price x rate; seller net = credits - debits
Math lesson 233
Real Estate Proration Calculations
Proration = periodic amount / period days x responsible days
Math lesson 234
Buyer Funds Needed at Closing
Cash to close = down payment + buyer debits and prepaids - deposits and buyer credits
Math lesson 235
Loan-to-Value and Down-Payment Calculations
LTV = loan / value; loan = value x LTV; value = loan / LTV
Math lesson 236
Debt-to-Income and Buyer-Qualification Ratios
Housing ratio = monthly housing expense / gross monthly income; total DTI = monthly housing expense + recurring monthly debts / gross monthly income
Math lesson 237
Gross Rent Multiplier
GRM = sale price / gross rent; estimated value = gross rent x GRM
Math lesson 238
Capitalization Rate and Value
R = I / V; V = I / R; I = V x R
Math lesson 239
Net Operating Income
NOI = potential gross income - vacancy and collection loss + other income - operating expenses
Math lesson 240
Area, Perimeter, Square Footage, and Acreage
Rectangle area = L x W; triangle area = B x H / 2; acres = square feet / 43,560
Math lesson 241
Appreciation, Depreciation, and Percentage Change
Percent change = (new - original) / original; new = original x (1 plus or minus rate)
Math lesson 244
Mortgage Payment and PITI Questions
PITI = monthly principal and interest + annual property tax / 12 + annual homeowners insurance / 12
Math lesson 245
Discount Points and Origination Fees
Dollar cost = loan amount x stated points or fee percentage
Math lesson 246
Equity Calculations
Equity = current market value - current secured debt; value = equity + debt
Math lesson 247
Sections, Townships, Acres, and Square Miles
Township = 36 sections = 36 square miles = 23,040 acres; section = 1 square mile = 640 acres
Math lesson 248
T-Bar Method for Real Estate Math
Part = total x rate; total = part / rate; rate = part / total
Math lesson 249
How to Read a Real Estate Math Word Problem
Target + base + rate + period + direction + units = complete setup
Math lesson 250
360-Day Versus 365-Day Proration
Prorated amount = annual amount / stated year basis x responsible days
Math lesson 251
Calendar-Day Proration Step by Step
Proration = annual amount / actual days in year x calendar days allocated
Math lesson 252
Debit and Credit Rules for Closing Math
One party's debit = the other party's equal credit for the same proration
Math lesson 253
Percent, Decimal, and Fraction Conversions
Decimal = percent / 100; percent = decimal x 100; decimal = numerator / denominator
Math lesson 254
Rounding and Units on Real Estate Exam Math
Exact statutory unit rule first; otherwise preserve precision and round the final requested unit
Math lesson 255
Math Formulas to Memorize
Name the target, base, rate, time, units, and direction before calculating
Math lesson 256
Ten Common Real Estate Math Mistakes
Target, base, formula, period, direction, units, rounding, reasonableness
Math lesson 257
How Much Math Is on the Georgia Exam?
PSI publishes 7% for national calculations, not a combined math count
Math lesson 258
Georgia Real Estate Math Drill
Mixed recognition, setup, calculation, explanation, and error review
Georgia-specific distinction
Worked example: Use the right Georgia tax base
Scenario. A property sells for $300,000 and the buyer signs a $240,000 note secured by Georgia real estate.
Reason it through. The transfer-tax calculation starts with the taxable consideration, here the sale figure if no excluded amount is supplied. The intangible recording-tax calculation starts with the $240,000 secured note. Using $300,000 for both produces a plausible but wrong intangible-tax answer.
Common exam traps
- Multiplying before identifying what the rate applies to
- Using market value instead of assessed value for Georgia property tax
- Using sale price instead of loan amount for intangible recording tax
- Forgetting to include a deposit when solving buyer cash
- Reversing NOI divided by value in a capitalization-rate question
Original practice questions with explanations
Answer each question before opening the explanation. These are original instructional questions mapped to the official outline. They are not copied from PSI or a live exam.
Question 1A buyer obtains an 80% loan on a $250,000 value. What is the loan amount?
- A. $50,000
- B. $180,000
- C. $200,000
- D. $250,800
Show answer and explanation →
Answer: C. $200,000
Loan equals value multiplied by LTV: $250,000 × 0.80 = $200,000.
Question 2A property produces $24,000 NOI and is valued at $300,000. What is the capitalization rate?
- A. 6%
- B. 8%
- C. 12.5%
- D. 80%
Show answer and explanation →
Answer: B. 8%
Capitalization rate equals NOI divided by value: $24,000 ÷ $300,000 = 0.08, or 8%.
Question 3Georgia intangible recording tax is calculated from which amount?
- A. Gross commission
- B. Secured note amount
- C. Assessed value
- D. Seller net
Show answer and explanation →
Answer: B. Secured note amount
The intangible tax follows the face amount of the note secured by Georgia real estate, not the property's sale price or assessed value.
Mastery tracking
Mark this area mastered only when every statement below is true.
- I can explain every official branch in plain English without notes.
- I can identify the Georgia distinction before reading the answer choices.
- I can solve a new scenario and state which fact controlled the answer.
- I can explain why each tempting distractor is wrong.
- I meet my accuracy target in mixed practice on at least two different days.
- I know which lesson to reopen when this area weakens.
Related lessons
Complete math formula guide
See every formula and worked example.
Free math drill
Practice setup and arithmetic without a sign-up.
Georgia calculators
Check transfer tax, intangible tax, LTV, PITI, and more.
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