How To Calculate Real GDP?

Choose the GDP type to calculate: real GDP (inflation-adjusted)

Pick a base year and a price index (e.g., CPI or GDP deflator)

Convert nominal GDP to real GDP using a price index method:

Real GDP = Nominal GDP ÷ (Price index ÷ 100)

Or compute real GDP using constant prices:

Real GDP (constant prices) = Σ (Quantity of each good in current year × Price of each good in base year)

If using the GDP deflator method:

Real GDP = Nominal GDP ÷ (GDP deflator ÷ 100)

If using growth rates:

Real GDP growth rate (%) = (Real GDPt − Real GDPt−1) ÷ Real GDPt−1 × 100

If using per-capita real GDP:

Real GDP per capita = Real GDP ÷ Population