GDP Per Capita Calculator: Measure Economic Prosperity Easily

The GDP Per Capita Calculator helps you determine the average economic output per person in a country. It is one of the most widely used indicators to measure a nation’s prosperity and standard of living.

This calculator divides a country’s Gross Domestic Product (GDP) by its population, giving you the GDP per capita value.

Formula for GDP Per Capita

The basic formula is:

$\text{GDP Per Capita}=\frac{\text{Gross Domestic Product (GDP)}}{\text{Population}}$

How to Use the Formula

1. Take the country’s total GDP (usually in USD or local currency).
2. Divide it by the total population.
3. The result gives you the average income or output per person.

Example Calculation

Suppose:

• GDP = $5,000,000,000 (5 billion USD)
• Population = 1,000,000 (1 million people)

$\text{GDP Per Capita}=\frac{5,000,000,000}{1,000,000}=5,000$

So, the GDP per capita is $5,000.

Why GDP Per Capita is Important

• Measures economic prosperity of a nation.
• Helps compare living standards between countries.
• Used by governments, economists, and businesses for policy and investment decisions.

Frequently Asked Questions

1. What is GDP per capita?

GDP per capita is a measure that divides a country's total Gross Domestic Product (GDP) by its total population. It provides an average economic output per person in a country, giving an indication of the average standard of living and economic well-being of its residents.

2. How is GDP per capita calculated?

​​​​​​​The calculation is straightforward:

GDP per Capita = Total GDP / Total Population

For example, if a country has a GDP of $1 trillion and a population of 100 million, its GDP per capita would be $10,000.

3. What does a higher GDP per capita typically indicate?

A higher GDP per capita generally suggests a higher level of economic development and prosperity in a country. It often correlates with better living standards, including access to better education, healthcare, infrastructure, and a wider range of goods and services for the average person.

4. What are the limitations of using GDP per capita as a measure of well-being?

While useful, GDP per capita has several limitations. It's an average and doesn't account for income inequality; a high average can mask significant disparities between rich and poor. It also doesn't measure non-market activities (like volunteer work), environmental quality, leisure time, happiness, or the sustainability of economic growth. Therefore, it's not a complete measure of overall well-being.

5. How is GDP per capita used by economists and policymakers?

​​​​​​​Economists and policymakers use GDP per capita to compare the economic performance and living standards of different countries, track economic growth over time, and identify areas for policy intervention. It helps in understanding productivity levels, identifying potential for market expansion, and evaluating the effectiveness of economic policies.