What Is the GDP Gap?
The GDP gap, also called the output gap, measures the difference between an economy’s actual GDP and its potential GDP — the level of output it could sustainably produce at full employment without triggering excess inflation.
The Formula
GDP Gap (%) = ((Actual GDP − Potential GDP) ÷ Potential GDP) × 100.
A positive gap means actual output exceeds potential output, which can signal an overheating economy and rising inflationary pressure. A negative gap means the economy is producing below its potential, often associated with higher unemployment and slack demand. This calculator is provided for general economic education and planning purposes only.
Last reviewed August 2026