Gross Domestic Product Calculator

GDP (Expenditure Method) Calculator

Input Fields

Personal consumption

C

$

Spending by households on goods and services

Gross investment

I

$

Total investment in capital goods (business spending)

Government consumption

G

$

Expenditures by government on goods and services

Exports of goods and services

X

$

Total value of goods and services sold abroad

Imports of goods and services

M

$

Total value of goods and services bought from abroad

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Gross Domestic Product (GDP)

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Gross Domestic Product Formula

$$\text{GDP} = C + I + G + (X – M)$$

Where:

• $$C$$ = Personal Consumption
• $$I$$ = Gross Investment
• $$G$$ = Government Consumption
• $$X$$ = Exports
• $$M$$ = Imports

Explanation:
This is the **expenditure approach** to GDP, which calculates the total market value of all final goods and services produced within a country’s borders in a given period.

Gross Domestic Product is a fundamental indicator of a country’s economic health. The expenditure approach focuses on demand-side components: household spending, business investment, public sector expenditure, and net exports.

Example Variables:

• Personal Consumption (C): $10 trillion
• Gross Investment (I): $3 trillion
• Government Consumption (G): $4 trillion
• Exports (X): $2 trillion
• Imports (M): $1.5 trillion
• GDP = 10 + 3 + 4 + (2 – 1.5) = $17.5 trillion

Use Cases:

• Economic research and education
• Comparing country performance
• Financial and policy decision-making