Real GDP Calculator
What is Real GDP?
Real GDP is a variation of GDP adjusted for price changes such as inflation or deflation. It is an adjustment of Nominal GDP.
It is listed an index point in time (for example, “2010 dollars”).
Formula – How to Calculate Real GDP
Real GDP = (Nominal GDP ÷ GDP deflator) x 100
Nominal GDP is $1,000,000 and the GDP deflator is 125.
Real GDP = ($1,000,000 ÷ 125) x 100 = $8,000 x 100 = $8,000,000
The real GDP is $8,000,000.
Sources and more resources
- Khan Academy – Real GDP and Nominal GDP – Part of a course on Macroeconomics. A video explaining the differences between real and nominal GDP. The series includes how to calculate one from the other.
- Wikipedia – Real Gross Domestic Product – A basic explanation of real GDP and examples of how it is used.
- The University of Minnesota – Principles of Macroeconomics – Growth of Real GDP and Business Cycles – An overview of how Real GDP has grown through recent history. Includes an overview of the business cycle as well.
- Cliffs Notes – Nominal GDP, Real GDP, and Price Level – A summary of different GDP methods and how to calculate between them.
- OECD – Real GDP Forecast – OECD country data including real GDP forecasts.