What is the GDP deflator?
Type nominal GDP and real GDP to get the GDP deflator, or type the deflator and one GDP figure to get the other. Add an earlier year's deflator to see the inflation rate between the two years. The GDP deflator calculator works from the exact numbers you type.
- GDP deflator
- 104.7
The GDP deflator is 104.7; real GDP is 17,388.7 and nominal GDP is 18,206.
- Real GDP
- 17,388.7
- Nominal GDP
- 18,206
- Price level change since the base year
- 4.7%
GDP deflator: 104.7. The GDP deflator is 104.7; real GDP is 17,388.7 and nominal GDP is 18,206.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the GDP deflator from nominal and real GDP (nominal ÷ real × 100), or real or nominal GDP from the deflator, with the inflation rate between two years.
Example with the default inputs (Find Deflator, Nominal GDP 18,206, Real GDP 17,388.7): The GDP deflator is 104.7; real GDP is 17,388.7 and nominal GDP is 18,206.
Method: Deflator = nominal GDP ÷ real GDP × 100; real GDP = nominal GDP ÷ (deflator ÷ 100); nominal GDP = real GDP × deflator ÷ 100; inflation = (deflator ÷ earlier deflator − 1) × 100.
- The deflator is a price index with the base year = 100, as in the US national accounts.
- Nominal and real GDP are in the same unit; you type every number, and no data is looked up.
Worked examples
Each example is checked against the calculator on every build.
- Find Deflator, Nominal GDP 18,206, Real GDP 17,388.7 gives GDP deflator 104.700179, Price level change since the base year 4.700179%.Source: https://openstax.org/books/principles-macroeconomics-3e/pages/6-2-adjusting-nominal-values-to-real-values
- Find Real GDP, Nominal GDP 542.4, GDP deflator 16.6 gives Real GDP 3,267.46988.Source: https://openstax.org/books/principles-macroeconomics-3e/pages/6-2-adjusting-nominal-values-to-real-values
- Find Nominal GDP, Real GDP 16,254, GDP deflator 100 gives Nominal GDP 16,254, Price level change since the base year 0%.Source: https://openstax.org/books/principles-macroeconomics-3e/pages/6-2-adjusting-nominal-values-to-real-values
- Find Deflator, Nominal GDP 20,893.7, Real GDP 18,392.3, Deflator in an earlier year 104.7 gives GDP deflator 113.600257, Inflation since the earlier year 8.500723%.Source: https://openstax.org/books/principles-macroeconomics-3e/pages/6-2-adjusting-nominal-values-to-real-values
How it works
The GDP deflator is a price index for everything in GDP, with the base year = 100. OpenStax states the link as nominal GDP = real GDP × deflator ÷ 100. Choose which of the three to find:
- Deflator = nominal GDP ÷ real GDP × 100.
- Real GDP = nominal GDP ÷ (deflator ÷ 100).
- Nominal GDP = real GDP × deflator ÷ 100.
Then, from the deflator D:
- Price level change since the base year = D − 100, in percent.
- Inflation since an earlier year (optional, when you type an earlier deflator D₀) = (D ÷ D₀ − 1) × 100, in percent.
Rules. Each number is from 0.000001 to 10¹⁵. Nominal and real GDP are in the same unit (dollars, billions, or any other); the deflator has no unit. With these bounds every result is finite. A found deflator or real GDP is at most 10²³ (10¹⁵ ÷ 0.000001 × 100), a found nominal GDP at most 10²⁸ (10¹⁵ × 10¹⁵ ÷ 100), and the inflation since an earlier year at most about 10³¹ (a deflator of 10²³ over an earlier deflator of 0.000001).
Rounding. Every value is an exact fraction of the typed decimals, rounded once for display to 2 decimals.
Worked examples by hand
United States, 2015 (page default). Nominal $18,206 billion, real $17,388.7 billion. Deflator = 18,206 ÷ 17,388.7 × 100 = 104.70. Price level change = 104.70 − 100 = 4.70%. OpenStax lists 104.7.
Real GDP, 1960. Nominal $542.4 billion, deflator 16.6. Real GDP = 542.4 ÷ 0.166 = 3,267.47 billion. OpenStax gives $3,267.5 billion.
The base year, 2012. Real GDP $16,254 billion, deflator 100. Nominal GDP = 16,254 × 100 ÷ 100 = 16,254.00; price level change 0.00%.
United States, 2020, with inflation since 2015. Nominal $20,893.7 billion, real $18,392.3 billion. Deflator = 20,893.7 ÷ 18,392.3 × 100 = 113.60. With the 2015 deflator 104.7: (113.6003 ÷ 104.7 − 1) × 100 = 8.50%.
Other questions people ask
How do I calculate the GDP deflator?
Divide nominal GDP by real GDP and multiply by 100. For the United States in 2015: $18,206.0 billion ÷ $17,388.7 billion × 100 = 104.7, so prices were 4.7% higher than in the 2012 base year.
How do I find real GDP from the deflator?
Divide nominal GDP by the deflator over 100. In 1960, nominal GDP was $542.4 billion and the deflator was 16.6: $542.4 billion ÷ 0.166 = $3,267.5 billion in 2012 dollars.
What is the difference between nominal and real GDP?
Nominal GDP values each year’s output at that year’s prices. Real GDP values it at the prices of a base year, so it changes only when the quantity of goods and services changes. In the base year the two are equal and the deflator is 100.
How do I calculate inflation from the GDP deflator?
Take the percent change between two years’ deflators: (later ÷ earlier − 1) × 100. From 104.7 in 2015 to 113.6 in 2020 is (113.6 ÷ 104.7 − 1) × 100 = 8.5% over the five years.
How is the GDP deflator different from the CPI?
The GDP deflator covers every good and service produced in the country, including investment and government purchases. The consumer price index covers a basket of goods and services that households buy, including imports.
Where do I find nominal and real GDP?
In the national accounts. For the United States, the Bureau of Economic Analysis publishes GDP in current dollars and in chained dollars, and the implicit price deflator. Type the numbers here; the page looks nothing up.