GDP calculator (expenditure approach)
The expenditure approach adds up everything spent on final goods and services produced in an economy: household consumption, business investment, government purchases and net exports. Enter the five components in any one currency unit, for example billions, and get GDP, net exports and the share of each component. Add the population in the same scale if you want GDP per person.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter consumption, investment and government purchases.
- Enter exports and imports.
- Optionally enter the population to get GDP per person; keep the units consistent (billions of money and millions of people give thousands per person).
- GDP = C + I + G + (X − M)
- Net exports = X − M
- Share of a component = component ÷ GDP
- GDP per person = GDP ÷ population
Worked example
C = 14,000, I = 4,000, G = 3,500, X = 2,500, M = 3,000:
- Net exports = 2,500 − 3,000 = −500.
- GDP = 14,000 + 4,000 + 3,500 − 500 = 21,000.
- Shares: consumption 66.67 %, investment 19.05 %, government 16.67 %, net exports −2.38 %.
With 600, 200, 150, 300 and 250 and a population of 50, GDP is 1,000 and GDP per person is 20.
Tips
- Use figures for the same year and in the same prices; for growth over time use real GDP (see the GDP deflator calculator).
- Count only final goods: adding intermediate purchases counts the same output twice.
- Second-hand sales and purely financial transactions are not part of GDP.
Frequently asked questions
What is the GDP formula?
GDP = C + I + G + (X − M): consumption plus investment plus government purchases plus exports minus imports. With 14,000, 4,000, 3,500, 2,500 and 3,000 it is 14,000 + 4,000 + 3,500 − 500 = 21,000.
Why are imports subtracted?
Consumption, investment and government spending include goods made abroad. GDP measures what is produced at home, so imports are taken out; exports are produced at home but bought abroad, so they are added.
Can investment be negative?
Gross investment includes changes in inventories. If firms sell more from stock than they produce, the inventory change is negative, and in a bad year the total can be too.
Do transfers like pensions count as government purchases?
No. G covers what the government buys (salaries of public employees, roads, equipment). Pensions and benefits are transfers; they show up in consumption when people spend them.