Enter the average annual share of investment in GDP and the average annual growth rate of GDP into the Calculator. The calculator will evaluate the Capital Output Ratio.

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## Capital Output Ratio Formula

ICOR = I / G

Variables:

- ICOR is the Capital Output Ratio ()
- I is the average annual share of investment in GDP
- G is the average annual growth rate of GDP

To calculate Capital Output Ratio, divide the average annual share of investment in GDP by the average annual growth rate of the GDP.

## How to Calculate Capital Output Ratio?

The following steps outline how to calculate the Capital Output Ratio.

- First, determine the average annual share of investment in GDP.
- Next, determine the average annual growth rate of GDP.
- Next, gather the formula from above = ICOR = I / G.
- Finally, calculate the Capital Output Ratio.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

average annual share of investment in GDP = 2.5

average annual growth rate of GDP = 5