GDP Calculator
Calculate gross domestic product using the expenditure or income approaches.
Expenditure Approach
GDP = C + I + G + (X - M), where C is consumption, I is investment, G is government spending, X is exports, M is imports.
GDP (Expenditure):
Formula: C + I + G + (X - M)
Income Approach
GDP = Wages + Interest + Rent + Profits + Depreciation.
GDP (Income):
Formula: Wages + Interest + Rent + Profits + Depreciation
Two views of the same economy
The expenditure approach and income approach are two different ways of measuring the same overall economic output — in theory, they should produce identical GDP figures, since every dollar spent on goods and services (expenditure) ultimately becomes someone's income (wages, rent, interest, profit). In practice, real-world national accounts show small discrepancies between the two due to measurement and data-collection differences.
Frequently asked questions
Why does the expenditure formula subtract imports? Consumption, investment, and government spending figures include money spent on imported goods — subtracting imports removes spending on foreign-made goods so the formula reflects only domestic production.
Why is depreciation included in the income approach? Depreciation (consumption of fixed capital) reflects wear on existing capital equipment used in production — including it makes the income-side total properly match gross (not net) domestic product.
What's the difference between GDP and GNP? GDP measures output produced within a country's borders regardless of who owns the producing entity; GNP measures output produced by a country's residents/companies regardless of where in the world it's produced.