# GDP Gap Calculator (Output Gap)

URL: https://speedycalculator.com/calculators/finance/gdp-gap/
Last updated: 2026-10-25

> The GDP gap calculator works out the output gap – the difference between actual and potential GDP – in money and as a percentage, and tells you whether the economy is overheating or has slack.

## Inputs

- Actual GDP
- Potential GDP

## Results

- Output gap
- Output gap
- Economy

## Formula

```
Output gap = actual GDP − potential GDP
Output gap % = (actual − potential) ÷ potential × 100
```

## Explanation

A positive gap (actual above potential) tends to push up inflation; a negative gap means unused capacity and usually higher unemployment. Potential GDP is estimated – in the U.S. by the Congressional Budget Office.

### How to use the GDP Gap Calculator

- **Actual GDP**
- **Potential GDP**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter actual and potential GDP.

### Tips

- Use real (inflation-adjusted) figures to compare across years.
- Check whether data are seasonally adjusted.
- Use the same currency and base year throughout.
- Economic models simplify reality – treat results as illustrations, not forecasts.

### Common mistakes to avoid

- Mixing nominal and real values.
- Comparing percentage changes with percentage-point changes.
- Treating correlations as causes.

### Inputs explained

FieldWhat to enterActual GDPAmount in your currencyPotential GDPAmount in your currency

### What each result means

- **Output gap** = [Actual GDP] - [Potential GDP]
- **Output gap** = ([Actual GDP] - [Potential GDP])÷[Potential GDP]×100

### Example values

How the main result changes when **Actual GDP** changes and everything else stays at the example values above:

Actual GDPOutput gap (%)11,750-50.6317,625-25.9523,500-1.2629,37523.4235,25048.1147,00097.48

## Worked example

Inputs — Actual GDP: $23,500; Potential GDP: $23,800.

Results — Output gap = $-300.00; **Output gap = -1.26 %**; Economy = Recessionary gap – below potential.

## FAQ

**What is the GDP gap?**
The difference between actual and potential output.

**What causes a negative output gap?**
Weak demand, e.g. during a recession.

**Who estimates potential GDP?**
In the U.S., the Congressional Budget Office.

**What formula does the GDP Gap Calculator use?**
Output gap = actual GDP − potential GDP.


## Sources

- [Congressional Budget Office](https://www.cbo.gov/)