Real Gdp Calculator

Step-by-Step Guide to Using the Real GDP Calculator

The Real GDP Calculator is a tool designed to help users calculate the Real GDP based on Nominal GDP and the GDP Deflator. It also provides additional insights, such as the GDP Growth Rate and the implied Inflation Rate. Follow the instructions below to effectively use this calculator.

Step 1: Input Nominal GDP

Begin by entering the Nominal GDP value.

• Field Label: Nominal GDP
• Type: Number
• Placeholder Text: Enter Nominal GDP value
• Validation Criteria: This field is required, and the value must be 0 or greater.

Step 2: Input GDP Deflator

Next, input the GDP Deflator, which should be understood as a measure using a base year (set at 100).

• Field Label: GDP Deflator (Base Year = 100)
• Type: Number
• Placeholder Text: Enter GDP Deflator
• Validation Criteria: This field is required. The value must be between 0.01 and 1000.

Step 3: Select the Base Year

Select the appropriate base year from the available options. This selection can affect the interpretation of GDP Deflator.

• Field Label: Base Year
• Type: Select
• Available Options: 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023
• Validation Criteria: This selection is required.

Step 4: Calculate and Review Real GDP

Once all inputs are provided, the calculator computes the Real GDP using the formula:

• (Nominal GDP / GDP Deflator) * 100

The result is formatted as currency (USD) with two decimal places.

Step 5: Review GDP Growth Rate

The calculator also computes the GDP Growth Rate, providing insights into economic expansion or contraction. The formula used is:

• ((Real GDP – Nominal GDP) / Nominal GDP) * 100

The result is shown as a percentage with two decimal places.

Step 6: Review Implied Inflation Rate

Lastly, the calculator provides the Implied Inflation Rate, calculated using the GDP Deflator, to indicate inflation levels:

• ((GDP Deflator – 100) / 100) * 100

The result is formatted as a percentage with two decimal places.