What counts toward GDP?

Only final goods and services produced within the country in the period. Intermediate goods, second-hand sales, and purely financial transactions are excluded to avoid double counting.

What is the GDP deflator?

A price index covering everything in GDP: deflator = (Nominal GDP ÷ Real GDP) × 100. Unlike CPI it reflects the actual mix of goods produced each year.

Gdp Calculator

Calculate gross domestic product three ways: the expenditure approach (C + I + G + net exports), the resource cost-income approach from wages, rents, profits and taxes, or convert nominal GDP to real GDP with the GDP deflator.

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Approach

Expenditure (C+I+G+X−M)Income approachNominal → Real (deflator)

Personal Consumption (C)

Gross Investment (I)

Government Consumption (G)

Exports (X)

Imports (M)

Employee Compensation

Proprietors’ Income

Rental Income

Corporate Profits

Interest Income

Indirect Business Taxes

Depreciation (capital consumption)

Net Income of Foreigners

Nominal GDP

GDP Deflator

Price index relative to the base year (base year = 100).

Live mode: results update as you type.

GDP (Expenditure Approach)

$21,200

GDP = C + I + G + (X − M)

Personal Consumption (C): $14,000
Gross Investment (I): $4,000
Government Consumption (G): $3,500
Exports (X): $2,500
Imports (M): $2,800
Net Exports (X − M): -$300
GDP: $21,200

Expenditure composition

Consumption C$14,000
Investment I$4,000
Government G$3,500

Solution steps

1Write the formulaGDP = C + I + G + (X − M)
2Substitute valuesGDP = $14,000 + $4,000 + $3,500 + ($2,500 − $2,800)
3Net exportsX − M = -$300
4SumGDP = $21,200

Imports exceed exports — a trade deficit subtracts from GDP. This is normal for many open economies.

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Formula

Expenditure: GDP = C + I + G + (X − M) · Income: GDP = GNP + IBT + Depreciation + Net Foreign Income · Real GDP = Nominal ÷ Deflator × 100

• Expenditure sums all final spending: households (C), firms (I), government (G), net exports.
• Income approach sums factor incomes (wages, rents, profits, interest), then adds taxes and depreciation.
• Deflator mode removes price changes: Real GDP = Nominal GDP ÷ Deflator × 100.

Pro tips

• All three approaches should give the same GDP — they are three views of the same spending.
• The deflator > 100 means prices rose since the base year, so real GDP < nominal GDP.
• Use real GDP to compare output across years; nominal GDP mixes price and quantity changes.

FAQ

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Gdp Calculator

#gdp calculator#gross domestic product#expenditure approach#income approach#gdp deflator

Formula

Expenditure: GDP = C + I + G + (X − M) · Income: GDP = GNP + IBT + Depreciation + Net Foreign Income · Real GDP = Nominal ÷ Deflator × 100

• Expenditure sums all final spending: households (C), firms (I), government (G), net exports.

• Income approach sums factor incomes (wages, rents, profits, interest), then adds taxes and depreciation.

• Deflator mode removes price changes: Real GDP = Nominal GDP ÷ Deflator × 100.