Real estate math for the Florida exam
Last reviewed: November 2026
Real estate math on the Florida sales associate exam is a short list of formulas used over and over: percentages, per-day amounts, rates per $100, and area. The DBPR outline places math in five areas: commission (V), legal descriptions (X), finance (XII), closing computations (XIV) and property taxes (XVIII).
Below is each formula with a worked example. All numbers were calculated and double-checked; the examples are ours, not exam questions.
Real estate math cheat sheet
| Topic | Formula |
|---|---|
| Commission | Sale price × commission rate |
| Deed doc stamps (Florida) | Taxable units of $100, rounded up × $0.70 |
| Note/mortgage doc stamps | Taxable units of $100, rounded up × $0.35 |
| Intangible tax | Mortgage amount × 0.002 |
| Acres | Square feet ÷ 43,560 |
| Cap rate (income approach) | Net operating income ÷ value; value = NOI ÷ cap rate |
| Loan-to-value | Loan amount ÷ value (or price, if lower) |
| Property tax | Taxable value × millage ÷ 1,000 |
| Proration | Annual (or monthly) amount ÷ days in period × days owed |
Commission and commission splits
A home sells for $412,000. The total commission is 5.5%. The listing broker keeps 50% of the commission, and pays the listing sales associate 65% of the broker's share.
- Total commission: $412,000 × 0.055 = $22,660
- Listing broker's share: $22,660 × 0.50 = $11,330
- Sales associate: $11,330 × 0.65 = $7,364.50
Tip: a Florida sales associate may collect money only in the name of their employer (broker) and with the employer's express consent, and may sue for a commission only against the person registered as their employer at the time (s. 475.42(1)(d), F.S.). The exam likes to pair that rule with a split question.
Documentary stamp tax on the deed
Florida taxes deeds at 70 cents per $100 of consideration (s. 201.02(1)(a), F.S.; Miami-Dade County uses a different rate). The Florida Department of Revenue applies the rate to each $100 "or portion thereof," so round up to the next $100 unit.
A house sells for $327,450.
- Units: $327,450 ÷ 100 = 3,274.5 → round up to 3,275
- Tax: 3,275 × $0.70 = $2,292.50
Doc stamps on the note and intangible tax on the mortgage
A buyer signs a new $261,960 note secured by a recorded Florida mortgage.
- Note/mortgage stamps at 35 cents per $100 (s. 201.08, F.S.): 2,620 units × $0.35 = $917.00
- Nonrecurring intangible tax at 2 mills, i.e. $0.002 per dollar (s. 199.133(1), F.S.): $261,960 × 0.002 = $523.92
More examples, including Miami-Dade and the $2,450 cap on unsecured notes, are on our Florida documentary stamp tax page.
Area and acreage
One acre is 43,560 square feet. A section in the government survey system is 1 square mile, or 640 acres.
- A lot measures 660 ft × 330 ft = 217,800 sq ft ÷ 43,560 = 5 acres.
- The S 1/2 of the NE 1/4 of a section: 640 × 1/4 × 1/2 = 80 acres. Multiply the fractions, then multiply by 640.
Cap rate formula
The income approach values a property by dividing net operating income (NOI) by the capitalization rate. Rearrange the same formula to find any one part:
- Value = NOI ÷ cap rate
- Cap rate = NOI ÷ value
- NOI = value × cap rate
Example: NOI is $61,200 and the market cap rate is 8.5%. Value = $61,200 ÷ 0.085 = $720,000.
Remember: NOI is income after operating expenses but before mortgage payments. A higher cap rate means a lower value for the same income.
Loan-to-value (LTV)
A home is valued at $385,000. The lender allows 80% LTV.
- Maximum loan: $385,000 × 0.80 = $308,000
- Down payment: $385,000 − $308,000 = $77,000
If a question gives both a price and an appraised value, use the one the question says the lender relies on.
Property tax and millage
One mill is one-tenth of a cent, so a millage rate is dollars of tax per $1,000 of taxable value. Subtract exemptions first.
A home has a taxable value of $235,000 after exemptions, and the total millage rate is 19.5 mills.
- $235,000 ÷ 1,000 × 19.5 = $4,582.50 per year
Prorations
Florida property taxes for a year become due on November 1 of that year (s. 197.333, F.S.), so taxes are paid in arrears. At a closing before November the seller usually owes the buyer for the part of the year the seller owned the home. The question will tell you whether to use a 365-day year or a 360-day "banker's year," and who owns the day of closing.
Annual taxes are $4,380. Closing is June 15. The buyer owns the day of closing. Use a 365-day year.
- Seller's days: January 1 to June 14 = 165 days
- Daily rate: $4,380 ÷ 365 = $12.00
- Proration: $12.00 × 165 = $1,980, a debit to the seller and a credit to the buyer
With a 360-day year (30-day months), the seller's days are 5 × 30 + 14 = 164, and the proration is $4,380 ÷ 360 × 164 = $1,995.33. Debits and credits are explained on our closing prorations page.
Common math mistakes on the exam
- Not rounding doc stamp units up to the next $100.
- Using the sale price instead of the loan amount for note stamps and intangible tax.
- Forgetting to subtract exemptions before applying millage.
- Counting the closing day for the wrong party.
- Splitting a commission from the sale price instead of from the broker's share.
Practice the math
The free 50-question Florida practice test includes commission, survey, qualifying, appraisal and tax math with step-by-step explanations. The paid question bank adds more math drills and full timed exams.
Real Estate Drill is an independent study tool. We are not affiliated with FREC, DBPR or Pearson VUE.