GDP Calculator

The four expenditure components — combined into a single GDP figure.

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GDP
$22,000
Net exports (X − M)
$-500

GDP = C + I + G + (X − M) — the expenditure approach, one of three standard ways to calculate gross domestic product, alongside the income and production approaches.

A worked example

With $15,000 in consumption, $3,500 in investment, $4,000 in government spending, $2,500 in exports and $3,000 in imports, GDP comes to exactly $22,000.

Frequently asked questions

What are the four components in plain terms?

Consumption is household spending on goods and services. Investment is business spending on capital like equipment and buildings (plus residential construction). Government spending covers public expenditures. Net exports is exports minus imports, capturing trade's effect on domestic output.

Why can net exports be negative?

When a country imports more than it exports, net exports subtracts from GDP — reflecting that some domestic spending went toward goods produced elsewhere rather than domestically.

Is this the only way to calculate GDP?

No — the income approach (summing wages, profits, and other income) and the production approach (summing value added at each stage of production) are two alternative methods that, in theory, arrive at the same total.