Enter the nominal GDP and the GPD deflation into the real GDP calculator. The calculator will return the real gross domestic product.
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Real GDP Formula
The following formula is used to calculate the real gross domestic product.
RGDP = NGDP+ (NGDP*GDPD/100)
- Where RGDP is the real gross domestic product
- NGDP is the nominal gross domestic product
- GDPD is the deflation rate
Real GDP Definition
A real GDP or real gross domestic product is the GDP of a country after deflation has been accounted for.
How to calculate real GDP?
How to calculate real GDP
- First, determine the nominal GDP
Using an online database that tracks gross domestic product, determine the GDP of the country is analyzed.
- Next, determine the deflation
Deflation is the rate of decrease of the value of money in that given country.
- Calculate the real GDP
Enter the information from steps 1 and 2 into the formula or calculator above.
Real GDP is a measure of gross domestic product that takes into account the deflation of a currency of that country with respect to the rest of the world.
Deflation is a process that occurs when a currency because more valuable with respect to other currencies over time.