GDP Calculator
Expenditure Approach
Result
| Net Exports (X - M) | — |
|---|---|
| Gross Domestic Product (GDP) | — |
How to calculate GDP
The Gross Domestic Product (GDP) represents the total monetary value of all final goods and services produced within a country's borders in a specific time period. The most common way to calculate GDP is the Expenditure Approach.
The formula is: GDP = C + I + G + (X - M)
- C (Consumption): All private consumer spending within a country's economy.
- I (Investment): Business investments in equipment, structures, and inventory.
- G (Government Spending): Total government expenditures on final goods and services.
- X (Exports): Goods and services produced domestically but sold abroad.
- M (Imports): Goods and services produced abroad but purchased domestically. (X - M) is known as Net Exports.