U.S. headline GDP growth is the quarterly change in real GDP at an annualized rate; most other countries report the plain quarter-on-quarter change. Two consecutive negative quarters is a common, though unofficial, definition of a recession.
How to use the GDP Growth Rate Calculator
- Real GDP (previous period)
- Real GDP (current period)
- Period
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter real GDP for the previous and current period and choose the period length.
Inputs explained
| Field | What to enter |
|---|---|
| Real GDP (previous period) | Amount in your currency |
| Real GDP (current period) | Amount in your currency |
| Period | Choose one: Quarter, Year, Month |
What each result means
- Growth for the period = ([Real GDP (current period)]÷[Real GDP (previous period)] – 1)×100
- Annualized growth rate = (([Real GDP (current period)]÷[Real GDP (previous period)])^[Period] – 1)×100
Example values
How the main result changes when Real GDP (previous period) changes and everything else stays at the example values above:
| Real GDP (previous period) | Annualized growth rate (%) |
|---|---|
| 11,650 | 1,550.02 |
| 17,475 | 225.93 |
| 23,300 | 3.13 |
| 29,125 | -57.76 |
| 34,950 | -79.63 |
| 46,600 | -93.55 |
Formula
Growth = (GDP this period − GDP last period) ÷ GDP last period × 100
Annualized quarterly growth = ((Q1 ÷ Q0)⁴ − 1) × 100
Worked example
Inputs: Real GDP – previous period: $23,300; Real GDP – current period: $23,480; Period: Quarter.
Results: Growth for the period = 0.773 %; Annualized growth rate = 3.13 %.
Frequently asked questions
How is GDP growth calculated?
(Current real GDP − previous) ÷ previous × 100.
Why is U.S. GDP growth annualized?
To show what the yearly rate would be if the quarter's pace continued.
What is a healthy GDP growth rate?
Around 2–3% a year for advanced economies.