Basic

GDP per Capita

Average economic output per person.

Formula

\frac{GDP}{Population}

Variables

GDPTotal output

PopulationPeople

Example

Rough living-standard measure

How it works

GDP per capita is found by dividing a country’s total economic output by the number of people who live there. This turns a large national total into an average amount of production per person, which helps compare how much income or output is available on average in different places. It works because dividing by population spreads the total GDP across everyone, giving a per-person measure rather than a whole-country total.

When to use it

Use this formula when comparing the average economic size of different countries, regions, or years. It is also useful for rough comparisons of living standards, productivity, or economic development.

Worked example, step by step

Suppose a country has GDP = 5,000,000,000,000 and Population = 50,000,000 Step 1: Write the formula: GDP per Capita = GDP / Population Step 2: Substitute the values: GDP per Capita = 5,000,000,000,000 / 50,000,000 Step 3: Divide: GDP per Capita = 100,000 Final answer: GDP per capita = 100,000 per person

Common mistakes to avoid

Using the total GDP value without dividing by population
Mixing up population with number of households or workers
Forgetting that the result is an average and does not show how income is distributed

Did You Know?

GDP per capita averages a nation's output per person but hides how unevenly that wealth is shared.

macro

GDP per Capita

Formula

Variables

Example

How it works

When to use it

Worked example, step by step

Common mistakes to avoid

Did You Know?

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GDP Growth Rate

Inflation Rate

Unemployment Rate

Real GDP

GDP Deflator