The GDP per capita calculator helps you determine how much each person contributes to economic outputs within a specific country. With per-unit calculations, this tool makes it easy for you to compare the economic conditions across different regions.

## What is GDP per capita?

GDP per capita, also known as **gross domestic product per capita**, is a metric used to measure the average economic output per person of a country's residents. It is calculated by dividing the total GDP of a country by its total population.

GDP per capita is typically expressed in either the **local current currency**, **local constant currency**, or a universally recognized unit of currency in international markets, such as the **U.S. dollar (USD)**.

If a country has a **higher GDP per person**, it usually means that people there have more money on average which indicates a **better standard of living**.

## GDP per capita formula:

The formula that our GDP per capita calculator uses is as follows:

**GDP per capita = Gross Domestic Product / Population**

Where,

**GDP per capita**– Average economic output per person in that country

**Gross Domestic Product (GDP)**– Total value of goods and services produced in a region

**Population**– Total number of people in that region

## How to calculate per capita GDP?

The GDP per capita can be calculated by applying the formula mentioned above. However, you can also use this GDP per capita calculator available on Calculatored for instant calculations. We have also included a practical example below to enhance your understanding.

**Example:**

Suppose we have a country with a Gross Domestic Product (GDP) of $500 million and a population of 50,000.

**Given values:**

**Gross Domestic Product:**$500 million**Total Population:**50,000

To calculate the GDP per capita for this country, let’s apply the previously mentioned formula:

**GDP per capita = Gross Domestic Product / Population**

Now, add the given values to the formula and calculate:

**GDP per capita**= $500,000,000 / 50,000**GDP per capita**= $10,000

So, the GDP per capita for this country would be **$10,000**. This means that, on average, each person in the country contributes $10,000 to the overall GDP.

## How does real GDP differ from GDP per capita?

Real GDP and GDP per capita are distinct economic measures that provide different perspectives on the economy:

**Key differences:**

**Focus:**Real GDP focuses on the total economic output, while GDP per capita focuses on the average individual output.

**Adjustment:**Both use real GDP for calculations, which is already adjusted for inflation.**Purpose:**Real GDP shows overall economic growth, while GDP per capita shows average economic well-being.

## How does GDP per capita affect the economy?

When companies think about expanding their business to new countries, they check GDP per capita. If the GDP per capita is high in that country, it means on average, people can spend more money. This makes the place attractive for businesses to invest there in the fields of luxury goods or high-quality services.