New York · Chapter 16 of 26

Real Estate Mathematics

The calculations the exam expects: commissions and splits, interest, appreciation and depreciation, points, area and perimeter, acres and hectares, price per square foot, basic mortgage qualifying, and New York transfer tax, mortgage recording tax and property tax computations.

20-minute read · Built for the Salesperson Exam

percentages (part = whole x rate)commission and splitssimple interestappreciation and depreciationpoints (1 point = 1% of the loan)square feet and perimeteracre = 43,560 sq fthectarefront footprice per square footloan-to-valuequalifying ratiostransfer tax ($2 per $500)mortgage recording tax (per $100)tax rate per $1,000

The Percentage Formula

Nearly every real estate math problem uses one relationship: Part = Whole x Rate. To find the part (a commission, interest or tax), multiply the whole by the rate. To find the rate, divide the part by the whole. To find the whole (a sale price or loan amount), divide the part by the rate. Convert percentages to decimals by moving the decimal point two places left (6% = 0.06; 0.5% = 0.005). A useful check: the answer for a whole is always larger than the part.

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