Real GDP Calculator

Formula

To calculate the real GDP:

\[ RGDP = NGDP + \left( \frac{NGDP \times DPD}{100} \right) \]

Where:

$RGDP$ is the Real Gross Domestic Product (\$)
$NGDP$ is the Nominal Gross Domestic Product (\$)
$DPD$ is the Deflation Rate (%)

What is Real GDP?

Real GDP or real gross domestic product is the GDP of a country after deflation has been accounted for. It measures the value of economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and how it's growing over time.

Example Calculation 1

Let's assume the following values:

Nominal GDP ($NGDP$) = $500,000
Deflation Rate ($DPD$) = 2%

Using the formula:

\[ RGDP = 500,000 + \left( \frac{500,000 \times 2}{100} \right) = 500,000 + 10,000 = 510,000 \, \text{\$} \]

The Real GDP is $510,000.

Example Calculation 2

Let's assume the following values:

Nominal GDP ($NGDP$) = $750,000
Deflation Rate ($DPD$) = 5%

Using the formula:

\[ RGDP = 750,000 + \left( \frac{750,000 \times 5}{100} \right) = 750,000 + 37,500 = 787,500 \, \text{\$} \]

The Real GDP is $787,500.