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.

  1. First, determine the savings ratio. 
  2. Next, determine the capital output ratio. 
  3. Next, gather the formula from above = O(g) = s/k.
  4. Finally, calculate the Harrod-Domar Equation.
  5. 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