Unlike the CPI, the GDP deflator covers all goods and services produced domestically (including investment and government purchases) and its basket changes every year.
How to use the GDP Deflator Calculator
- Nominal GDP
- Real GDP
- Last year’s GDP deflator
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter nominal and real GDP for this year and, optionally, last year’s deflator.
Inputs explained
| Field | What to enter |
|---|---|
| Nominal GDP | Amount in your currency |
| Real GDP | Amount in your currency |
| Last year’s GDP deflator | A number |
What each result means
- GDP deflator = [Nominal GDP]÷[Real GDP]×100
- Inflation since last year = ([GDP deflator]÷[Last year’s GDP deflator] – 1)×100
- Price level vs base year = [GDP deflator] – 100
Example values
How the main result changes when Nominal GDP changes and everything else stays at the example values above:
| Nominal GDP | GDP deflator |
|---|---|
| 14,500 | 61.7 |
| 21,750 | 92.55 |
| 29,000 | 123.4 |
| 36,250 | 154.26 |
| 43,500 | 185.11 |
| 58,000 | 246.81 |
Formula
GDP deflator = nominal GDP ÷ real GDP × 100
Inflation = (deflator this year ÷ deflator last year − 1) × 100
Real GDP = nominal GDP ÷ deflator × 100
Worked example
Inputs: Nominal GDP: $29,000; Real GDP: $23,500; Last year's GDP deflator: 120.
Results: GDP deflator = 123.4; Inflation since last year = 2.84 %; Price level vs base year = 23.4 %.
Frequently asked questions
What is the GDP deflator?
A price index for everything produced in the economy.
How is it different from the CPI?
It covers all domestic output, not just a consumer basket.
What does a deflator of 120 mean?
Prices are 20% higher than in the base year.