How to Calculate the Net National Product

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Net national product is a macroeconomics term related to methods of measuring and representing national income. The term refers to a figure, measured in dollars, derived by applying a standard formula to the value for the gross national product. The aim of calculating the net national product is to arrive at a figure for national income that takes into account the depreciation of investments that occurs during the time frame for which the gross national product is being calculated.

Determine the value for the gross national product for the time period you have selected.

Determine the value for the depreciation of investments for the time period you have selected.

Enter the values you have determined into the standard formula: Gross national product minus depreciation of investments equals net national product.

Apply the standard formula using the values you have identified. The figure that results from the calculation is the net national product.

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