Debt to GDP Ratio Calculator

Debt to GDP Ratio Calculator – Measure Economic Health

The Debt to GDP Ratio Calculator helps you determine the percentage of a country's national debt compared to its Gross Domestic Product (GDP). This ratio is one of the most important indicators used by economists to measure a nation’s ability to repay its debt.

A higher ratio suggests that a country may struggle to pay its debt without incurring further debt, while a lower ratio indicates better financial stability.

Debt to GDP Ratio Formula

$\text{Debt to GDP Ratio (\%)}=\frac{\text{Total National Debt}}{\text{Gross Domestic Product (GDP)}}\times 100$

Step-by-Step Calculation

1. Find the total national debt – The total amount the country owes to domestic and foreign lenders.
2. Find the GDP – The total value of all goods and services produced in the country within a year.
3. Divide the total national debt by GDP.
4. Multiply the result by 100 to get the ratio as a percentage.

Example

Given:

• Total National Debt = $25 trillion
• GDP = $21 trillion

Formula:

$\text{Debt to GDP Ratio (\%)}=\frac{25}{21}\times 100$

Calculation:

$\text{Debt to GDP Ratio (\%)}=1.190\times 100=119.0\%$​​​​​​​

Why is the Debt to GDP Ratio Important?

• Economic Stability – A low ratio means the country is in a stronger position to pay back its debt.
• Investor Confidence – Countries with lower debt ratios attract more foreign investment.
• Policy Decision-Making – Helps governments decide fiscal policies, spending, and taxation.