📈 GDP Calculator
Calculate Gross Domestic Product (GDP) using the expenditure approach: consumption, investment, government spending, and net exports.
Expenditure Components
Your Result
| Component | Amount | % of GDP |
|---|
GDP = C + I + G + (X − M). A negative net export figure (trade deficit) reduces overall GDP.
How the GDP Calculator Works
Gross Domestic Product (GDP) measures the total monetary value of all finished goods and services produced within a country's borders in a given period. The expenditure approach calculates GDP by summing all spending on final goods and services.
Formula
Where C = Consumption (household spending), I = Investment (business spending on capital), G = Government spending, X = Exports, and M = Imports.
Frequently Asked Questions
What is the expenditure approach to GDP?
The expenditure approach calculates GDP by adding up all spending on final goods and services: consumption, investment, government spending, and net exports.
Why can net exports be negative?
If a country imports more than it exports (a trade deficit), net exports (X − M) is negative, which reduces the overall GDP figure.
Is this the only way to calculate GDP?
No. GDP can also be calculated using the income approach (summing wages, profits, rents, and taxes) or the production approach (summing value added at each stage of production). All three should theoretically yield the same result.