Cover what you need: Part = Total × Rate · Total = Part ÷ Rate · Rate = Part ÷ Total
Before you read
Test yourself first: 5 questions
Question 1 of 5
A buyer pays $50,000 down on a $250,000 home. What is the down-payment percentage?
Answer: C. $50,000 ÷ $250,000 = 0.20 = 20%.
Question 2 of 5
An investor buys a property for $200,000 and sells it for $260,000. What is the percent profit (based on cost)?
Answer: B. Gain = $60,000. $60,000 ÷ $200,000 = 0.30 = 30%.
Question 3 of 5
One discount point equals what percentage of the loan amount?
Answer: C. A discount point is 1% of the loan amount, paid up front to lower the interest rate.
Question 4 of 5
A common rule of thumb states that paying discount points typically lowers the interest rate by approximately how much per point?
Answer: C. As a general guideline, one discount point usually reduces the rate by roughly one-quarter of a percent (0.25%).
Question 5 of 5
A house has a luxury kitchen that cost $80,000 but adds only $35,000 to value in its modest neighborhood. This illustrates:
Answer: B. CONTRIBUTION: an improvement is worth what the market pays for it, not its cost — the over-improvement problem. Conformity's regression effect compounds it in a modest area.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- PART on top; TOTAL × RATE on the bottom
- Cover what you need: Part = Total × Rate · Total = Part ÷ Rate · Rate = Part ÷ Total
- Commission: $15,000 ÷ $250,000 = 6%
- Works for interest, commissions, taxes, depreciation — every percent question
- Read twice: is the number the PART (commission) or the TOTAL (price)?
The T-Bar — Solve Any Percent Problem: FAQs
Is The T-Bar — Solve Any Percent Problem on the real estate exam?
Yes. Real Estate Math is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
