Enter the nominal GDP and the GPD deflation into the real GDP calculator. The calculator will return the real gross domestic product.
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 data base that tracks gross domestic product, determine the GDP of the country being analyzed.
- Next, determine the deflation
The deflation is the rate of decrease of 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.
FAQ
What is real GDP?
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.
What is deflation?
Deflation is a process that occurs when a currency because more valuable with respect to other currencies over time.
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