Gross Domestic Product (GDP) Calculator

You can use this Gross Domestic Product (GDP) calculator to determine the GDP of a given country based on its income and expenditure.

Simply choose the calculation approach you wish to employ, input the relevant information into the available fields, and click on the "Calculate GDP" link.

GDP Calculator (Expenditure Method)

Results
Gross Domestic Product (GDP):

What is GDP?

Gross domestic product (GDP) is a high-level indication of a country's economic performance that is calculated by taking into consideration the sum of the cash value of all the services and goods it produces during a certain period.

GDP is typically monitored over a long-term basis as a means of evaluating how a given country is performing economically. When a country's economy is growing, its GDP will be steadily increasing. On the contrary, when the GDP is falling, the country is not performing to its full potential and may even be suffering an economic recession.

The population of a country can be divided by its GDP to gain insights into the extent to which every citizen on average (“per capita”) is contributing to the nation's economic activity.

While the GDP represents a significant gauge of economic growth, if a country has a strong GDP, this does not necessarily mean that its welfare system is good and the well-being of its citizens is high.

Calculating GDP

Three figures are of interest when calculating GDP: income, expenditure, and value-added (production).

Two main methods are employed to determine GDP:

  1. The Expenditure method. The expenditure method is a very common approach that involves summing the money spent, including investment spending, consumer spending, government spending, and net exports, in a given country within a certain period.
  2. The Income method. The income method involves summing the total income, including salaries, business profits, and taxes, of citizens within a given country. Any subsidies, such as incentives to encourage economic activity, are not included in the calculation.

Regardless of which approach is employed, the final figure should be roughly similar. However, there will be some differences to a certain extent as the GDP figure is based on different data sources.

GDP Formulas

This GDP calculator employs the following formulas to determine the gross domestic product:

GDP = C + I + G + NX   (Expenditure Method)

Where:

GDP = gross domestic product, C = consumer spending, I = investment spending, G = government spending, and NX = net exports of goods and services (the value of a country's total imports extracted from its total exports).

GDP = COE + I + R + P + C + T + D + N   (Income Method)

Where:

GDP = gross domestic product, COE = compensation of employees, I = interest income, R = rents, P = proprietor's income, C = corporate profits, T = indirect business taxes, D = depreciation, and N = net factor income.

You may also be interested in our Inflation Calculator

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