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
| Field | What to enter |
|---|---|
| Actual GDP | Amount in your currency |
| Potential GDP | Amount 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 GDP | Output gap (%) |
|---|---|
| 11,750 | -50.63 |
| 17,625 | -25.95 |
| 23,500 | -1.26 |
| 29,375 | 23.42 |
| 35,250 | 48.11 |
| 47,000 | 97.48 |
Formula
Output gap = actual GDP − potential GDPOutput gap % = (actual − potential) ÷ potential × 100Worked example
Inputs — Actual GDP: $23,500; Potential GDP: $23,800.
Results — Output gap = $-300.00; Output gap = -1.26 %; Economy = Recessionary gap – below potential.
Frequently asked questions
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.