Economics Formula Calculator
This free tool helps you calculate key economic metrics like GDP, inflation, profit, and more. Each formula includes a brief explanation.
Total Revenue (TR)
Description: Total Revenue is the total amount earned from sales. It is calculated by multiplying the price per unit by the quantity sold.
Formula: TR = Price × Quantity
Gross Domestic Product (GDP)
Description: GDP represents the total market value of all final goods and services produced in a country. The expenditure method sums consumption, investment, government spending, and net exports.
Formula: GDP = C + I + G + (X − M)
Price Elasticity of Demand (PED)
Description: PED measures how much the quantity demanded changes in response to a price change. Values greater than 1 indicate elastic demand.
Formula: PED = (%Δ Quantity) / (%Δ Price)
Marginal Cost (MC)
Description: Marginal Cost is the increase in total cost from producing one more unit of output.
Formula: MC = Δ Total Cost / Δ Quantity
Profit (π)
Description: Profit is the difference between a firm’s total revenue and its total cost.
Formula: Profit = Total Revenue − Total Cost
Unemployment Rate
Description: The unemployment rate is the percentage of the labor force that is jobless and actively seeking employment.
Formula: Unemployment Rate = Unemployed / Labor Force × 100
Inflation Rate (CPI)
Description: The inflation rate shows how much prices have increased over a period, measured by changes in the Consumer Price Index (CPI).
Formula: (CPInew – CPIold) / CPIold × 100
Real GDP
Description: Real GDP adjusts nominal GDP for inflation and gives a more accurate measure of economic output over time.
Formula: Real GDP = Nominal GDP / GDP Deflator × 100
Money Multiplier
Description: The money multiplier shows how much money banks can generate with each unit of reserves.
Formula: Money Multiplier = 1 / Reserve Ratio
Future Value (FV)
Description: Future Value estimates how much an investment made today will be worth in the future based on interest rates.
Formula: FV = PV × (1 + r)n
Present Value (PV)
Description: Present Value calculates the current worth of a future amount of money, discounted at a specific interest rate.
Formula: PV = FV / (1 + r)n