Gross Domestic Product (GDP) Formula and How to Use It

What Is Gross Domestic Product (GDP)? Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health. Though GDP is typically calculated on an annual basis, it is sometimes calculated on a quarterly basis as well. In the U.S., for example, the government releases an annualized GDP estimate for each fiscal quarter and also for the calendar year. The individual data sets included in this report are given in real terms, so the data is adjusted for price changes and is, therefore, net of inflation.Key TakeawaysGross domestic product is the monetary value of all finished goods and services made within a country during a specific period.GDP provides an economic snapshot of a country, used to estimate the size of an economy and its growth rate.GDP can be calcul...