National practice guide

Treat every math question as a labeled relationship

Real estate math punishes silent assumptions. A candidate sees annual taxes and a monthly payment, mixes the periods, and chooses a polished wrong answer. Another divides value by loan because both numbers are present. Put the requested unit on paper, label the parties, write the formula, and estimate before pressing equals. The setup is your error-control system.

Last updated: August 1, 2026

What skill does this practice set measure?

Short answer: Use Target, Timeline, Terms, Formula, Estimate, Calculate, and Check. Seller net equals seller credits minus seller debits. Buyer funds begin with down payment, add buyer charges, and subtract deposits and credits. A proration uses the stated period, day convention, responsible days, and correct debit-credit direction. PITI combines monthly principal, interest, taxes, and insurance. Equity is current value minus relevant secured debt. Capitalization rate is annual NOI divided by value. LTV is loan amount divided by the required value base. Points and origination fees use the loan amount unless the prompt expressly states otherwise. Transfer fees require the correct jurisdiction, taxable consideration, unit, rounding rule, and responsible party. Illinois currently charges $0.50 for each $500 of value or fraction, while county or municipal taxes can add another layer. Keep full precision until the final step and reverse the formula whenever possible.

Official section: National XI: Real Estate Math
Broker weight: Approximately 7 of 100 scored national questions
Expected scored items: The current PSI broker outline assigns about 7% of the national portion to Real Estate Math

Illinois Real Estate Exam Math Practice: 2026 exam weight
Official section	Broker weight	Expected scored items
National XI: Real Estate Math	Approximately 7 of 100 scored national questions	The current PSI broker outline assigns about 7% of the national portion to Real Estate Math

The current outline names seller net, buyer funds, prorations, transfer fees, PITI, equity, capitalization or rate of return, LTV, discount points, and origination fees. Commission can be an input but is not a separate current math family. Qualification ratios support Financing. Transfer taxes, proration customs, assessment systems, allocations, and rounding can vary by jurisdiction or contract, so use the exact facts supplied. Sources were checked through August 1, 2026.

Ready to work the set?

These questions are original study items aligned to the published outline. They are not copied, recalled, or predicted PSI questions.

1. A home sells for $300,000. Seller debits total $192,000. What is the seller's net under the stated facts?

$108,000
$192,000
$300,000
$492,000

Show answer and explanation

Answer: $108,000

Seller net is seller credits minus seller debits. $300,000 minus $192,000 equals $108,000.

2. Monthly principal and interest are $1,500, annual taxes are $4,800, and annual insurance is $1,200. What is monthly PITI?

$2,000
$1,600
$2,500
$7,500

Show answer and explanation

Answer: $2,000

Monthly taxes are $400 and monthly insurance is $100. Add both to $1,500 for $2,000.

3. A property worth $400,000 has $265,000 in total secured debt. What is the owner's equity?

$135,000
$265,000
$400,000
$665,000

Show answer and explanation

Answer: $135,000

Equity is current value minus relevant property-secured debt: $400,000 minus $265,000.

4. Annual NOI is $54,000 and value is $675,000. What is the capitalization rate?

8%
12.5%
4%
80%

Show answer and explanation

Answer: 8%

$54,000 divided by $675,000 equals 0.08, which is 8%.

5. A $240,000 loan carries 2 discount points. What is the dollar cost of the points?

$4,800
$2,400
$12,000
$48,000

Show answer and explanation

Answer: $4,800

Two points equal 2% of the loan amount. $240,000 multiplied by 0.02 equals $4,800.

Which answer habits should you watch for?

Trap: Every number in the story belongs in the formula.
Correction: Use only figures tied to the requested output. Exam questions often include true but irrelevant data.

Trap: Seven percent means multiply by 7.
Correction: Convert 7% to 0.07 before multiplying or dividing.

Trap: Seller net equals equity.
Correction: Equity excludes many selling costs and closing adjustments that affect net proceeds.

Trap: Down payment is always final buyer cash to close.
Correction: Final funds also account for buyer charges, prepaids, deposits, and credits.

Trap: Every proration uses a 360-day year.
Correction: Use the exact convention stated, including 365 or actual calendar days when supplied.

Trap: Calculating the proration amount automatically identifies who is debited.
Correction: Payment status, ownership period, and closing-day rule determine the debit-credit direction.

Trap: Annual taxes can be added directly to monthly principal and interest.
Correction: Divide annual taxes by 12 before combining monthly PITI components.

Trap: Equity uses the original purchase price.
Correction: Use current value unless the question expressly defines another value figure.

Trap: Cap rate uses gross rent.
Correction: Capitalization rate uses annual NOI. GRM is the gross-rent relationship.

Trap: Debt service is an operating expense in standard NOI.
Correction: Standard exam NOI is calculated before mortgage debt service.

Trap: LTV equals value divided by loan.
Correction: Loan belongs in the numerator and the required value base belongs in the denominator.

Trap: Points are based on sale price.
Correction: One point is one percent of the loan amount unless the problem expressly defines a different base.

Illinois Real Estate Exam Math Practice: 2026 trap corrections
Trap	Correction
Every number in the story belongs in the formula.	Use only figures tied to the requested output. Exam questions often include true but irrelevant data.
Seven percent means multiply by 7.	Convert 7% to 0.07 before multiplying or dividing.
Seller net equals equity.	Equity excludes many selling costs and closing adjustments that affect net proceeds.
Down payment is always final buyer cash to close.	Final funds also account for buyer charges, prepaids, deposits, and credits.
Every proration uses a 360-day year.	Use the exact convention stated, including 365 or actual calendar days when supplied.
Calculating the proration amount automatically identifies who is debited.	Payment status, ownership period, and closing-day rule determine the debit-credit direction.
Annual taxes can be added directly to monthly principal and interest.	Divide annual taxes by 12 before combining monthly PITI components.
Equity uses the original purchase price.	Use current value unless the question expressly defines another value figure.
Cap rate uses gross rent.	Capitalization rate uses annual NOI. GRM is the gross-rent relationship.
Debt service is an operating expense in standard NOI.	Standard exam NOI is calculated before mortgage debt service.
LTV equals value divided by loan.	Loan belongs in the numerator and the required value base belongs in the denominator.
Points are based on sale price.	One point is one percent of the loan amount unless the problem expressly defines a different base.

How should you reason through a difficult item?

Seller proceeds after three costs

Scenario: A home sells for $425,000. The seller pays a $236,000 mortgage payoff, a 4.5% commission, and $6,875 in other seller charges. Ignore every other item.

$425,000 multiplied by 0.045 gives a $19,125 commission.
Seller debits total $236,000 plus $19,125 plus $6,875, or $262,000.
$425,000 minus $262,000 leaves $163,000.

Answer: Estimated seller net is $163,000 under the stated facts.

Buyer funds after credits

Scenario: A buyer pays $450,000 with a $360,000 loan. Buyer costs are $8,600, earnest money is $7,500, and the seller gives a $3,000 credit. Ignore other items.

Down payment is $450,000 minus $360,000, or $90,000.
Add $8,600 in buyer charges to reach $98,600.
Subtract $7,500 earnest money and the $3,000 seller credit.

Answer: Buyer funds needed are $88,100 under the stated facts.

PITI from annual tax and insurance

Scenario: Monthly principal and interest are $1,925. Annual property taxes are $6,720 and annual homeowner's insurance is $1,680. Ignore other charges.

$6,720 divided by 12 gives $560 in monthly taxes.
$1,680 divided by 12 gives $140 in monthly insurance.
$1,925 plus $560 plus $140 equals $2,625.

Answer: Monthly PITI is $2,625.

Equity with two liens

Scenario: A property is worth $510,000. The first mortgage balance is $278,000, and a home-equity loan secured by the property has a $32,000 balance.

Relevant secured debt totals $310,000.
Current value is $510,000.
$510,000 minus $310,000 equals $200,000.

Answer: Owner equity is $200,000 before sale costs.

Value from NOI and cap rate

Scenario: An investment property produces $72,000 in annual NOI. Comparable investments support an 8% capitalization rate.

Value equals annual NOI divided by the capitalization rate.
Convert 8% to 0.08.
$72,000 divided by 0.08 equals $900,000.

Answer: The indicated value is $900,000.

Points plus origination

Scenario: A $320,000 loan has 1.5 discount points and a 0.75% origination fee. The question asks for their combined dollar amount and says to ignore every other charge.

The combined percentage is 2.25%, or 0.0225.
The base is the $320,000 loan amount, not the purchase price.
$320,000 multiplied by 0.0225 equals $7,200.

Answer: The two stated charges total $7,200.

The TT-FECC math workflow

Target: Write exactly what must be found and its unit, such as seller dollars, buyer dollars, monthly PITI, annual cap rate, or LTV percent.
Timeline and parties: Mark closing day, payment status, buyer, seller, borrower, lender, owner, and investor before assigning a debit or period.
Facts and units: Keep relevant figures, convert percentages to decimals, and normalize annual, monthly, daily, dollar, and percentage units.
Equation: Write the labeled formula before substituting numbers. If the relationship looks wrong in words, calculator accuracy will not save it.
Calculate: Estimate first, keep full precision through intermediate work, and round only as directed at the end.
Check: Reverse the formula, add the ledger columns, compare with the estimate, and confirm base, party, time period, direction, and unit.

Target: Seller net
Core setup: Seller credits minus seller debits
Common failure: Ignoring payoff or subtracting a cost twice

Target: Buyer funds
Core setup: Down payment plus buyer charges minus deposits and credits
Common failure: Calling down payment the final cash figure

Target: Daily proration
Core setup: Periodic amount divided by stated days times responsible days
Common failure: Wrong convention, day owner, or debit

Target: Transfer fee
Core setup: Taxable units times fee per unit
Common failure: Ignoring fraction or government layer

Target: PITI
Core setup: Monthly P and I plus monthly taxes plus monthly insurance
Common failure: Adding an annual amount to monthly figures

Target: Equity
Core setup: Current value minus relevant secured debt
Common failure: Using original price or ignoring junior debt

Target: Cap rate
Core setup: Annual NOI divided by value
Common failure: Using gross income or subtracting debt service

Target: Value by cap
Core setup: Annual NOI divided by cap rate
Common failure: Multiplying instead of dividing

Target: LTV
Core setup: Loan amount divided by required value base
Common failure: Reversing numerator and denominator

Target: Points or origination fee
Core setup: Loan amount times stated percentage
Common failure: Using purchase price as the base

Current real estate math formulas and error controls
Target	Core setup	Common failure
Seller net	Seller credits minus seller debits	Ignoring payoff or subtracting a cost twice
Buyer funds	Down payment plus buyer charges minus deposits and credits	Calling down payment the final cash figure
Daily proration	Periodic amount divided by stated days times responsible days	Wrong convention, day owner, or debit
Transfer fee	Taxable units times fee per unit	Ignoring fraction or government layer
PITI	Monthly P and I plus monthly taxes plus monthly insurance	Adding an annual amount to monthly figures
Equity	Current value minus relevant secured debt	Using original price or ignoring junior debt
Cap rate	Annual NOI divided by value	Using gross income or subtracting debt service
Value by cap	Annual NOI divided by cap rate	Multiplying instead of dividing
LTV	Loan amount divided by required value base	Reversing numerator and denominator
Points or origination fee	Loan amount times stated percentage	Using purchase price as the base

Which outline areas does this set sample?

Topic: Reading before calculating
What to know: Requested result, dollars, percent, days, monthly, annual, buyer, seller, borrower, lender, owner, investor, relevant fact, distractor, base, period, direction, estimate, rounding, and reasonableness
Best exam move: Write the target and unit first, then copy only numbers connected to that target.

Topic: Seller net
What to know: Sale price, seller credit, mortgage payoff, junior lien, commission, transfer fee, tax proration, repair credit, concession, attorney fee, closing cost, other debit, proceeds, and no double subtraction
Best exam move: Begin with seller credits and subtract each seller debit once, keeping buyer cash and loan proceeds out unless the ledger facts require them.

Topic: Buyer funds at closing
What to know: Purchase price, loan amount, down payment, earnest money, deposit, buyer closing cost, prepaid tax, prepaid insurance, prorated adjustment, lender credit, seller credit, gift, cash to close, and amount already paid
Best exam move: Find price minus loan, add buyer charges and prepaids, then subtract deposits and credits already applied.

Topic: Property-tax and other prorations
What to know: Annual tax, monthly rent, interest, association dues, 360-day year, 365-day year, actual calendar day, closing day, paid in advance, paid in arrears, ownership period, responsible days, daily rate, debit, credit, and ledger
Best exam move: Choose the calendar convention and party responsibility before calculating the amount.

Topic: Real estate transfer fees
What to know: Taxable consideration, state tax, county tax, municipal tax, statutory rate, unit, fraction, round up, declaration, exemption, seller responsibility, buyer responsibility, local variation, and separate layers
Best exam move: Divide by the stated taxable unit, apply its fraction rule, multiply by the rate, and avoid blending state, county, and municipal charges.

Topic: PITI
What to know: Principal, interest, property taxes, homeowner's insurance, monthly principal and interest, annual taxes, annual insurance, divide by 12, mortgage insurance, association dues, escrow, housing payment, and component limit
Best exam move: Convert each component to monthly form and include only the four letters unless the question asks for a larger payment measure.

Topic: Equity
What to know: Current market value, secured debt, first mortgage, junior lien, home-equity loan, owner interest, appreciation, depreciation, principal reduction, negative equity, original price, cash invested, seller net, and sale cost
Best exam move: Subtract all relevant property-secured debt from current value, not automatically from original price.

Topic: NOI and capitalization rate
What to know: Potential gross income, vacancy and collection loss, other income, effective gross income, operating expense, net operating income, value, price, cap rate, annual period, debt service, depreciation, income tax, reserve, and inverse formula
Best exam move: Build annual NOI before dividing by value, and exclude financing and owner-specific items under the standard exam definition.

Topic: Loan-to-value ratio
What to know: Loan amount, value base, purchase price, appraised value, lesser-of rule when stated, first mortgage, combined LTV, percentage, down payment, refinance, and financing risk
Best exam move: Place the loan in the numerator and the question's required value base in the denominator.

Topic: Discount points
What to know: Loan amount, one point, one percent, discount point, interest-rate pricing, borrower charge, lender credit, percentage, decimal, dollar cost, purchase price distinction, and no term assumption
Best exam move: Multiply loan amount by the points percentage; do not use sale price merely because it is the larger number.

Topic: Loan origination fees
What to know: Loan amount, origination percentage, lender charge, processing, underwriting, point terminology, separate discount charge, dollar amount, Loan Estimate, Closing Disclosure, comparison, and no double count
Best exam move: Use the loan base and keep the origination charge separate from discount points unless the facts expressly combine them.

Illinois Real Estate Exam Math Practice: 2026 complete outline
Topic	What to know	Best exam move
Reading before calculating	Requested result, dollars, percent, days, monthly, annual, buyer, seller, borrower, lender, owner, investor, relevant fact, distractor, base, period, direction, estimate, rounding, and reasonableness	Write the target and unit first, then copy only numbers connected to that target.
Seller net	Sale price, seller credit, mortgage payoff, junior lien, commission, transfer fee, tax proration, repair credit, concession, attorney fee, closing cost, other debit, proceeds, and no double subtraction	Begin with seller credits and subtract each seller debit once, keeping buyer cash and loan proceeds out unless the ledger facts require them.
Buyer funds at closing	Purchase price, loan amount, down payment, earnest money, deposit, buyer closing cost, prepaid tax, prepaid insurance, prorated adjustment, lender credit, seller credit, gift, cash to close, and amount already paid	Find price minus loan, add buyer charges and prepaids, then subtract deposits and credits already applied.
Property-tax and other prorations	Annual tax, monthly rent, interest, association dues, 360-day year, 365-day year, actual calendar day, closing day, paid in advance, paid in arrears, ownership period, responsible days, daily rate, debit, credit, and ledger	Choose the calendar convention and party responsibility before calculating the amount.
Real estate transfer fees	Taxable consideration, state tax, county tax, municipal tax, statutory rate, unit, fraction, round up, declaration, exemption, seller responsibility, buyer responsibility, local variation, and separate layers	Divide by the stated taxable unit, apply its fraction rule, multiply by the rate, and avoid blending state, county, and municipal charges.
PITI	Principal, interest, property taxes, homeowner's insurance, monthly principal and interest, annual taxes, annual insurance, divide by 12, mortgage insurance, association dues, escrow, housing payment, and component limit	Convert each component to monthly form and include only the four letters unless the question asks for a larger payment measure.
Equity	Current market value, secured debt, first mortgage, junior lien, home-equity loan, owner interest, appreciation, depreciation, principal reduction, negative equity, original price, cash invested, seller net, and sale cost	Subtract all relevant property-secured debt from current value, not automatically from original price.
NOI and capitalization rate	Potential gross income, vacancy and collection loss, other income, effective gross income, operating expense, net operating income, value, price, cap rate, annual period, debt service, depreciation, income tax, reserve, and inverse formula	Build annual NOI before dividing by value, and exclude financing and owner-specific items under the standard exam definition.
Loan-to-value ratio	Loan amount, value base, purchase price, appraised value, lesser-of rule when stated, first mortgage, combined LTV, percentage, down payment, refinance, and financing risk	Place the loan in the numerator and the question's required value base in the denominator.
Discount points	Loan amount, one point, one percent, discount point, interest-rate pricing, borrower charge, lender credit, percentage, decimal, dollar cost, purchase price distinction, and no term assumption	Multiply loan amount by the points percentage; do not use sale price merely because it is the larger number.
Loan origination fees	Loan amount, origination percentage, lender charge, processing, underwriting, point terminology, separate discount charge, dollar amount, Loan Estimate, Closing Disclosure, comparison, and no double count	Use the loan base and keep the origination charge separate from discount points unless the facts expressly combine them.

What should you sort out before you begin?

Terms: Sale price vs. seller net
Difference: Sale price is the gross contract amount. Seller net is what remains after applicable seller debits and credits.
Question cue: Top-line price versus proceeds after costs.

Terms: Down payment vs. buyer cash to close
Difference: Down payment is the price not financed. Cash to close adds buyer costs and prepaids and subtracts deposits and credits.
Question cue: Equity contribution versus final adjusted funds.

Terms: Debit vs. credit
Difference: A debit charges a party. A credit benefits a party or applies against what that party owes. One transaction adjustment can create opposite entries for buyer and seller.
Question cue: Who owes and who receives?

Terms: Paid in advance vs. paid in arrears
Difference: Advance means a party prepaid a future period and may need reimbursement. Arrears means a party used a benefit before payment and may owe the next party or payee.
Question cue: Prepaid future use versus accrued unpaid use.

Terms: PITI vs. total housing payment
Difference: PITI includes principal, interest, taxes, and insurance. A broader housing payment can include mortgage insurance, association dues, or other charges.
Question cue: Four named components versus all monthly housing obligations.

Terms: Equity vs. seller proceeds
Difference: Equity is value minus relevant secured debt. Seller proceeds also reflect selling costs, taxes, concessions, credits, and closing adjustments.
Question cue: Ownership value versus closing cash.

Terms: Gross income vs. NOI
Difference: Gross income is revenue before deductions. NOI is effective gross income minus operating expenses before debt service, depreciation, and income tax in the standard exam setup.
Question cue: Cap rate uses NOI.

Terms: Cap rate vs. GRM
Difference: Cap rate uses annual NOI and value. Gross rent multiplier compares price with gross rent and does not directly deduct operating expenses.
Question cue: Net-income rate versus gross-rent multiple.

Terms: LTV vs. down-payment percentage
Difference: LTV divides the loan by the required value base. Down-payment percentage divides the buyer's contribution by price under the stated purchase facts.
Question cue: Debt share versus buyer price contribution.

Terms: Discount points vs. origination fee
Difference: Discount points are generally associated with interest-rate pricing. An origination fee compensates the lender for origination activity. Both can be stated as percentages of the loan but remain distinct charges.
Question cue: Pricing charge versus origination charge.

Illinois Real Estate Exam Math Practice: 2026 tested distinctions
Terms	Difference	Question cue
Sale price vs. seller net	Sale price is the gross contract amount. Seller net is what remains after applicable seller debits and credits.	Top-line price versus proceeds after costs.
Down payment vs. buyer cash to close	Down payment is the price not financed. Cash to close adds buyer costs and prepaids and subtracts deposits and credits.	Equity contribution versus final adjusted funds.
Debit vs. credit	A debit charges a party. A credit benefits a party or applies against what that party owes. One transaction adjustment can create opposite entries for buyer and seller.	Who owes and who receives?
Paid in advance vs. paid in arrears	Advance means a party prepaid a future period and may need reimbursement. Arrears means a party used a benefit before payment and may owe the next party or payee.	Prepaid future use versus accrued unpaid use.
PITI vs. total housing payment	PITI includes principal, interest, taxes, and insurance. A broader housing payment can include mortgage insurance, association dues, or other charges.	Four named components versus all monthly housing obligations.
Equity vs. seller proceeds	Equity is value minus relevant secured debt. Seller proceeds also reflect selling costs, taxes, concessions, credits, and closing adjustments.	Ownership value versus closing cash.
Gross income vs. NOI	Gross income is revenue before deductions. NOI is effective gross income minus operating expenses before debt service, depreciation, and income tax in the standard exam setup.	Cap rate uses NOI.
Cap rate vs. GRM	Cap rate uses annual NOI and value. Gross rent multiplier compares price with gross rent and does not directly deduct operating expenses.	Net-income rate versus gross-rent multiple.
LTV vs. down-payment percentage	LTV divides the loan by the required value base. Down-payment percentage divides the buyer's contribution by price under the stated purchase facts.	Debt share versus buyer price contribution.
Discount points vs. origination fee	Discount points are generally associated with interest-rate pricing. An origination fee compensates the lender for origination activity. Both can be stated as percentages of the loan but remain distinct charges.	Pricing charge versus origination charge.

How should you review your results?

Session: 1. Memorize the current families
Focus: Seller net, buyer funds, prorations, transfer fees, PITI, equity, capitalization rate, LTV, discount points, and origination fees
Proof you are ready: Write the core setup and correct base for every published family without notes.

Session: 2. Drill percentages and units
Focus: Percent, decimal, fraction, dollar base, annual, monthly, daily, days, rounding, estimate, inverse relationship, and reasonableness
Proof you are ready: Complete fifty conversions and reverse checks without a formula prompt.

Session: 3. Build closing ledgers
Focus: Buyer, seller, debit, credit, payoff, commission, cost, deposit, concession, prepaid item, arrears, advance, closing day, and proration
Proof you are ready: Solve ten two-column closings and make every required debit equal the matching credit.

Session: 4. Master income and financing formulas
Focus: PGI, vacancy, EGI, operating expense, NOI, cap rate, value, loan amount, value base, LTV, points, origination, PITI, and equity
Proof you are ready: Rearrange each formula to solve for every variable and reverse-check all answers.

Session: 5. Mix the families
Focus: Unannounced formula selection, irrelevant numbers, party direction, time normalization, jurisdiction, output unit, answer choices, and error classification
Proof you are ready: Complete three fresh ten-question sets without section labels and log every error cause.

Session: 6. Prove speed and accuracy
Focus: TT-FECC workflow, calculator entry, estimate, full precision, final rounding, reverse check, 90% target, and timed retrieval
Proof you are ready: Score at least 90% on three fresh mixed sets while averaging no more than 90 seconds per question.

Illinois Real Estate Exam Math Practice: 2026 focused study plan
Session	Focus	Proof you are ready
1. Memorize the current families	Seller net, buyer funds, prorations, transfer fees, PITI, equity, capitalization rate, LTV, discount points, and origination fees	Write the core setup and correct base for every published family without notes.
2. Drill percentages and units	Percent, decimal, fraction, dollar base, annual, monthly, daily, days, rounding, estimate, inverse relationship, and reasonableness	Complete fifty conversions and reverse checks without a formula prompt.
3. Build closing ledgers	Buyer, seller, debit, credit, payoff, commission, cost, deposit, concession, prepaid item, arrears, advance, closing day, and proration	Solve ten two-column closings and make every required debit equal the matching credit.
4. Master income and financing formulas	PGI, vacancy, EGI, operating expense, NOI, cap rate, value, loan amount, value base, LTV, points, origination, PITI, and equity	Rearrange each formula to solve for every variable and reverse-check all answers.
5. Mix the families	Unannounced formula selection, irrelevant numbers, party direction, time normalization, jurisdiction, output unit, answer choices, and error classification	Complete three fresh ten-question sets without section labels and log every error cause.
6. Prove speed and accuracy	TT-FECC workflow, calculator entry, estimate, full precision, final rounding, reverse check, 90% target, and timed retrieval	Score at least 90% on three fresh mixed sets while averaging no more than 90 seconds per question.

Do not count recognition as mastery. Close the notes and explain the rule, apply it to a new fact pattern, and identify why each distractor fails.

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Questions students ask about Illinois Real Estate Exam Math Practice: 2026

How many math questions are on the Illinois real estate exam?

The current PSI broker outline assigns approximately 7 of the 100 scored national questions to Real Estate Math. Quantitative reasoning also supports Financing, Valuation, Property Ownership, Transfer of Title, and Illinois tax topics, so a candidate can meet numbers outside the section labeled Math.

Which formulas are named in the current broker math outline?

The June 24, 2026 outline names seller net, buyer funds needed at closing, property-tax and other prorations, real estate transfer fees, PITI, equity, rate of return or capitalization rate, loan-to-value ratio, discount points, and loan origination fees. Those are the priority families for this practice page.

Are commission splits a standalone 2026 math topic?

No. Commission can appear as a seller cost, brokerage compensation fact, or supporting arithmetic, but commission splits are not their own named family in the current national Real Estate Math outline. Learn percentage arithmetic, then spend most practice time on the published calculation families.

Are buyer qualification ratios still on the exam?

Housing and total-debt ratios remain useful financing concepts and may support an underwriting question. The current Real Estate Math subheadings do not list buyer qualification ratios as a separate named family. Treat them as Financing support rather than replacing published math priorities with an older list.

What is the best real estate math setup?

Write the requested result and unit, list only relevant facts, normalize time periods, convert percentages to decimals, write the formula with labels, estimate direction and size, calculate without premature rounding, then reverse-check the result. Most mistakes occur before the calculator because the candidate chose the wrong base, party, period, or formula.

What does PITI include?

PITI means principal, interest, property taxes, and homeowner's insurance. Convert annual taxes and annual insurance to monthly figures before adding them to monthly principal and interest. Mortgage insurance, association dues, and other charges belong only when the question asks for a broader housing payment.

How do I calculate capitalization rate?

Capitalization rate equals annual net operating income divided by property value or price. NOI is effective gross income minus operating expenses before debt service, depreciation, and income taxes under the standard exam setup. Rearrange the same relationship to find value or NOI when another variable is unknown.

How do I avoid proration errors?

Draw a closing timeline, label whether the item is paid in advance or arrears, identify who owns the closing day, and use the stated 360-day, 365-day, or actual-calendar convention. Then decide who owes whom before multiplying. Correct arithmetic with the wrong day count or debit direction is still wrong.

What score should I target on real estate math practice?

A useful target is at least 90% on several fresh mixed ten-question sets, with the formula, base, units, and direction shown for every answer. Track low-confidence correct answers as well as misses. Repeated accuracy under varied wording is stronger evidence than memorizing one worksheet.

Are these official PSI real estate math questions?

No. They are original examples aligned to the published broker outline effective June 24, 2026. They are not copied or recalled live exam content. The PSI booklet and cited Illinois tax, CFPB, and mortgage sources were checked through August 1, 2026.

Primary sources

The current official outline controls the tested scope. Statutes, regulations, and official agency materials control when a general study rule and a jurisdiction-specific rule differ.

Editorial status

Checked against primary sources

The Pass Illinois editorial team last checked this guide on August 1, 2026. Every practice question is an original study item, and the source links above let you verify the rules that support the lesson.

Read our editorial and corrections process

Treat every math question as a labeled relationship

What skill does this practice set measure?

Ready to work the set?

1. A home sells for $300,000. Seller debits total $192,000. What is the seller's net under the stated facts?

2. Monthly principal and interest are $1,500, annual taxes are $4,800, and annual insurance is $1,200. What is monthly PITI?

3. A property worth $400,000 has $265,000 in total secured debt. What is the owner's equity?

4. Annual NOI is $54,000 and value is $675,000. What is the capitalization rate?

5. A $240,000 loan carries 2 discount points. What is the dollar cost of the points?

Which answer habits should you watch for?

How should you reason through a difficult item?

Seller proceeds after three costs

Buyer funds after credits

PITI from annual tax and insurance

Equity with two liens

Value from NOI and cap rate

Points plus origination

The TT-FECC math workflow

Which outline areas does this set sample?

What should you sort out before you begin?

How should you review your results?

Continue the feedback loop in Pass Illinois

Drill this topic, then review the explanation

What should you study next?

Questions students ask about Illinois Real Estate Exam Math Practice: 2026

Primary sources

Checked against primary sources

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