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It also includes core measurement conversions like acres to square feet and area/perimeter formulas, plus a glossary of essential terms such as ad valorem, amortization, escrow, equity, capitalization rate, and lease structures.",{"@graph":63,"@context":112},[64,80,95],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":46,"@type":70,"position":76},"https://docshare.wps.com/template/paper-templates/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/real-estate-math-cheat-sheet-real-estate-math-formulas/573481/",4,{"url":78,"name":59,"@type":81,"author":82,"headline":59,"publisher":85,"fileFormat":88,"inLanguage":57,"description":61,"dateModified":89,"datePublished":89,"encodingFormat":88,"isAccessibleForFree":90,"interactionStatistic":91},"DigitalDocument",{"name":83,"@type":84},"sagouaw","Person",{"url":68,"name":86,"@type":87},"DocShare","Organization","application/pdf","2026-10-14",true,{"@type":92,"interactionType":93,"userInteractionCount":4},"InteractionCounter",{"@type":94},"ViewAction",{"@type":96,"mainEntity":97},"FAQPage",[98,104,108],{"name":99,"@type":100,"acceptedAnswer":101},"What is the commission formula used on the cheat sheet?","Question",{"text":102,"@type":103},"Commission equals the house selling price multiplied by the commission percentage.","Answer",{"name":105,"@type":100,"acceptedAnswer":106},"How do you compute gross rent multiplier and annual gross rental income?",{"text":107,"@type":103},"Gross rent multiplier equals property price divided by gross rental income. Annual gross rental income equals monthly rental income multiplied by 12.",{"name":109,"@type":100,"acceptedAnswer":110},"What formulas does the sheet use for property tax?",{"text":111,"@type":103},"Property tax equals taxable assessed value times (mill rate / 1,000). Assessed value equals assessment rate times market value, and 1 mill equals $1 tax per $1,000 of taxable assessed value.","https://schema.org",{"og:url":78,"og:type":114,"og:title":59,"og:site_name":86,"og:description":61},"article",{"robots":116,"canonical":78},"index,follow",{"doc_id":118,"site_id":56},573481,1791940689,{"code":4,"msg":5,"data":121},{"doc_id":118,"user_id":122,"nickname":83,"user_avatar":123,"doc_module":9,"category_id":45,"category_name":46,"doc_title":59,"doc_description":61,"doc_content":124,"file_id":125,"file_url":126,"file_type":127,"file_size":128,"view_count":4,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":9,"language":129,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":130,"faqs":131,"seo_title":132,"seo_description":61,"update_tm":119,"read_time":4},3985747862151,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","| Real Estate Math Cheat Sheet\u003Cbr>Real Estate Math Formulas\u003Cbr>Commission Formula\u003Cbr>Commission = (house selling price) x (commission percentage) Simple Interest Formula\u003Cbr>Interest = (principal amount) x (rate of interest) (time) Gross Rent Multiplier Formulas\u003Cbr>Gross Rent Multiplier = (property price) / (gross rental income)\u003Cbr>Annual Gross Rental Income = (monthly rental income) x (12) 28/36 Rule of Thumb (a budgeting guideline)\u003Cbr>Monthly budgets: housing = income x .28; total debt = income x .36 Discount Points Formulas\u003Cbr>Discount Points = Prepaid Interest\u003Cbr>Break Even Point = (points cost) / (monthly payment savings) Property Tax Formulas\u003Cbr>Property Tax = taxable assessed value x (mill rate / 1,000) Assessed Value = (assessment rate) x (market value)\u003Cbr>1 mill = $1 of tax per $1,000 of taxable assessed value.\u003Cbr>Other Useful Real Estate Math Formulas\u003Cbr>1 Acre = 43560 square feet\u003Cbr>Area (ft2) = (length ft) x (width ft) Perimeter = (side) + (side) + (side) + (side)\u003Cbr>Use gross monthly income. Loan limits vary by lender and loan product.\u003Cbr>Sources: CFPB (mortgage terms/DTI); CT OPM (mills); CA DRE (value) .\u003Cbr>For More on Real Estate Math and Real Estate Exam Prep:\u003Cbr>[https://realestatelicensewizard.com/](https://realestatelicensewizard.com/)\u003Cbr>Copyright of Real Estate License Wizard-All Rights Reserved. | Real Estate Math Terms\u003Cbr>Ad valorem-The Latin phrase ad valorem means \"according to value.\"\u003Cbr>Amortization-Gradual repayment of loan principal through scheduled payments.\u003Cbr>Appraisal-An appraisal is an estimate of approximate worth of something.\u003Cbr>Appreciation-Appreciation is any gain in the value of a property over time from any cause.\u003Cbr>Capitalization-Capitalization is the conversion of assets or income into capital.\u003Cbr>Capitalization rate-Cap rate is used to indicate the rate of return that is expected to be generated on a property.\u003Cbr>Ceteris paribus-A Latin phrase meaning \"other things equal\" or in plain terms all things remaining constant.\u003Cbr>Commission-A commission is a fee paid to an agent for performing a transaction.\u003Cbr>Debt-Something owed or promised.\u003Cbr>Depreciation – Depreciation is any loss in the value of a property over time from any cause.\u003Cbr>Discount points – Discount points also known as mortgage points are prepaid interest.\u003Cbr>Double net lease – “”Double”” means two additional costs will be added to your base rent. Usually taxes and insurance costs are added to the monthly lease payment.\u003Cbr>Equity – Equity is the difference between the market value of your home and the amount you owe the lender who holds the mortgage.\u003Cbr>Escrow – Escrow is a way for money and property to be transferred from one party to another through the use of a neutral, third-party agent also known as an escrow agent. Escrow makes it a lot safer for both buyers and sellers to close the sale without worrying about getting snubbed or cheated.\u003Cbr>Gross rent multiplier – The ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. More specifically its a measure of the value of an investment property that is obtained by dividing the property’s sale price by its gross annual rental income.\u003Cbr>Interest – money paid or owed regularly at a particular rate.\u003Cbr>Investment –An investment is the legal purchase of something that is not consumed today but will be in the future to create profit.\u003Cbr>Market value-Estimated price in an open, competitive market under fair-sale conditions.\u003Cbr>Market price is the actual sale price; it can differ from market value.\u003Cbr>Mill rate-The number of dollars of tax per $1,000 of taxable assessed value.\u003Cbr>Also called the millage rate.\u003Cbr>Net listing –A net listing is when an agent agrees to sell an owner’s property for a set minimum price. Anything over the minimum price belongs to the agent as commission.\u003Cbr>Net operating income – The total income of a property minus all operating expenses.\u003Cbr>Prope","cbCaio3BWRMbenl2","https://ap.wps.com/l/cbCaio3BWRMbenl2","pdf",99253,"English","# Real Estate Math Cheat Sheet\n## Real Estate Math Formulas\n## Real Estate Math Terms","[{\"question\":\"What is the commission formula used on the cheat sheet?\",\"answer\":\"Commission equals the house selling price multiplied by the commission percentage.\"},{\"question\":\"How do you compute gross rent multiplier and annual gross rental income?\",\"answer\":\"Gross rent multiplier equals property price divided by gross rental income. Annual gross rental income equals monthly rental income multiplied by 12.\"},{\"question\":\"What formulas does the sheet use for property tax?\",\"answer\":\"Property tax equals taxable assessed value times (mill rate / 1,000). Assessed value equals assessment rate times market value, and 1 mill equals $1 tax per $1,000 of taxable assessed value.\"}]","Real Estate Math Cheat Sheet - Real Estate Math Formulas | PDF"]