Florida Real Estate Formula Sheet

Key calculations you need to know for the Sales Associate exam. Free for everyone.

💼Commissions & Fees

Total Commission
Sale Price × Commission Rate
Example: $300,000 × 6% = $18,000
Listing Agent's Share
Total Commission × Agent Split
Example: $18,000 × 50% = $9,000
Net to Seller
Sale Price − Total Commission − Other Closing Costs
Example: $300,000 − $18,000 − $3,000 = $279,000

🏦Financing & Mortgages

Loan-to-Value Ratio (LTV)
Loan Amount ÷ Appraised Value
Example: $240,000 ÷ $300,000 = 80% LTV
Down Payment
Sale Price − Loan Amount
Example: $300,000 − $240,000 = $60,000
Discount Points (cost)
Loan Amount × (Points ÷ 100)
Example: $240,000 × (2 ÷ 100) = $4,800 for 2 points
1 point = 1% of the loan amount
Monthly Interest (interest-only)
Loan Balance × (Annual Rate ÷ 12)
Example: $240,000 × (6% ÷ 12) = $1,200/mo
PITI
Principal + Interest + (Annual Taxes ÷ 12) + (Annual Insurance ÷ 12)
Example: $800 + $1,200 + $250 + $100 = $2,350/mo

🏠Property Valuation

Income Approach — Value
Net Operating Income (NOI) ÷ Capitalization Rate
Example: $30,000 ÷ 10% = $300,000
Capitalization Rate
NOI ÷ Property Value
Example: $30,000 ÷ $300,000 = 10%
Gross Rent Multiplier (GRM)
Sale Price ÷ Gross Monthly Rent
Example: $300,000 ÷ $2,500 = GRM of 120
Value via GRM
GRM × Gross Monthly Rent
Example: 120 × $2,500 = $300,000
Straight-Line Depreciation (annual)
(Improvement Cost − Salvage Value) ÷ Useful Life
Example: ($250,000 − $0) ÷ 27.5 years = $9,091/yr (residential)
IRS: 27.5 yrs residential, 39 yrs commercial. Land is never depreciated.

📈Income & Investment

Potential Gross Income (PGI)
Gross Rent × 12 months
Example: $2,500 × 12 = $30,000/yr
Effective Gross Income (EGI)
PGI − Vacancy & Collection Loss
Example: $30,000 − $1,500 (5%) = $28,500
Net Operating Income (NOI)
EGI − Operating Expenses
Example: $28,500 − $8,500 = $20,000
Mortgage payments (debt service) are NOT an operating expense.
Cash-on-Cash Return
Annual Cash Flow ÷ Total Cash Invested
Example: $8,000 ÷ $60,000 = 13.3%

🧾Taxes & Prorations

Ad Valorem Tax (millage)
Assessed Value × (Mill Rate ÷ 1,000)
Example: $200,000 assessed × (12 mills ÷ 1,000) = $2,400/yr
Assessed Value from Mill Rate
Annual Tax ÷ (Mill Rate ÷ 1,000)
Example: $2,400 ÷ 0.012 = $200,000
Florida Homestead Exemption
First $25,000 fully exempt · $25K–$50K school taxes only · Additional $25K non-school exempt
Example: Home assessed at $80,000: $25K exempt (all) + $25K school taxes + $25K exempt (non-school)
Save Our Homes caps annual assessment increases at 3% or CPI, whichever is lower.
Daily Proration Rate
Annual Amount ÷ 365 days (or ÷ 360 for banker's year)
Example: $2,400/yr ÷ 365 = $6.58/day
Prorated Amount (taxes/rent)
Daily Rate × Number of Days
Example: $6.58 × 90 days = $592.19

🪙Documentary Stamp Taxes & Intangible Tax

Doc Stamps on Deed
Sale Price ÷ 100 × $0.70
Example: $300,000 ÷ 100 × $0.70 = $2,100
Dade County rate is $0.60 per $100. Paid by seller at closing.
Doc Stamps on Mortgage / Promissory Note
Loan Amount ÷ 100 × $0.35
Example: $240,000 ÷ 100 × $0.35 = $840
Paid by buyer/borrower at closing.
Intangible Tax on New Mortgage
Loan Amount × $0.002
Example: $240,000 × $0.002 = $480
One-time tax on new mortgages only. Paid by buyer/borrower.

📌Quick References

Passing Score — FL Sales Associate Exam
75 out of 100 questions correct (75%)
Broker Post-License Education
60 hours within 18 months of licensure
Sales Associate Post-License Education
45 hours within 18 months of licensure
License Renewal Cycle
Every 2 years (March 31 or September 30)

AhaPrep is not affiliated with Pearson VUE, DBPR, or FREC. AhaPrep is an exam prep tool and is not a substitute for the required 63-hour prelicense course.

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