# Using the T-Method for Real Estate Calculations

As a new real estate agent, you may find yourself struggling with math, especially when it comes to calculating commissions, fees, and other financial aspects of real estate transactions. However, there is a simple method called the T-method for real estate that can make real estate math much easier for you. In this blog post, we’ll explain what the T-method is and how to use it with a simple example.

## What is the T-method for real estate?

The T-method for real estate is a simple technique for calculating percentages that involves drawing a T-shape on a piece of paper. The above the horizontal line of the T represents the “part” of the equation, the right side of the vertical line represents the “percentage” that you need to calculate, and the left side of the vertical line represents the “total” of the calculation. To use the T-method for real estate, you can multiply on the vertical line, so the total x percentage = part.  You should divide on the horizontal line, so part / total = percentage and part / percentage = total.

## How to use the T-method for real estate?

Let’s say you’re working on a real estate transaction where the sales price is \$500,000 and your commission rate is 5%. To use the T-method for real estate, you would first write the total sales price of \$500,000 on the left side of the vertical line. Next, you write the 5% on the right side of the vertical line.

To calculate your 5% commission using the T-method for real estate, you would simply multiply on the vertical line, so \$500,000 x 5% = \$25,000.

## Why is the T-method for real estate useful?

The T-method for real estate is useful because it allows you to quickly and easily calculate percentages without relying on a calculator or doing complex math. This can save you time and reduce the chance of errors, which is especially important in real estate transactions where accuracy is crucial. Additionally, the T-method for real estate can help you understand how different commission rates and fees affect the overall transaction.

## Conclusion

As a new real estate agent, the T-method for real estate can be a valuable tool to simplify complex math calculations. By drawing a T-shaped diagram, you can easily calculate percentages for commissions, fees, and other financial aspects of real estate transactions. With practice, the T-method for real estate can become second nature and help you save time and avoid errors in your calculations.

## Need more real estate math practice?

For more real estate math formulas and practice, get our 125 Real Estate Math Problems Solved Book. It covers 9 real estate math topics with full solutions and video explanations!