Enter the savings ratio and the capital output ratio into the Calculator. The calculator will evaluate the Harrod-Domar Equation.

## Harrod-Domar Equation Formula

O(g) = s/k

Variables:

- O(g) is the Harrod-Domar Equation ((growth in total output))
- s is the savings ratio
- k is the capital output ratio

To calculate growth in total output from the Harrod-Domar Equation, divide the savings ratio by the capital output ratio.

## How to Calculate Harrod-Domar Equation?

The following steps outline how to calculate the Harrod-Domar Equation.

- First, determine the savings ratio.
- Next, determine the capital output ratio.
- Next, gather the formula from above = O(g) = s/k.
- Finally, calculate the Harrod-Domar Equation.
- 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.

savings ratio = 6.75

capital output ratio = 23.234