# Formula for calculating gross value added at market price and gross value added at factor cost

Dear Student,
The following are the three formulas for estimating GDPmp.
1. GDPmp = Gross Value Added by the Primary sector + Gross Value Added by the Secondary sector + Gross Value Added by the Tertiary sector
2. GDPmp = Compensation of Employees + Operating Surplus + Mixed Income of Self-employed + Net indirect taxes + Depreciation
3. GDPmp = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Fixed Capital Formation + Change in Stock + Net Exports

The following are the three formulas for estimating GDPfc.
1. GDPfc = Gross Value Added by the Primary sector + Gross Value Added by the Secondary sector + Gross Value Added by the Tertiary sector - Net Indirect taxes
2. GDPfc = Compensation of Employees + Operating Surplus + Mixed Income of Self-employed + Net indirect taxes + Depreciation - Net Indirect taxes
3. GDPfc = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Fixed Capital Formation + Change in Stock + Net Exports - Net Indirect taxes

In case of any doubts, do get back to us.

• -3

GVAmp is also known as GDPmp so we can calculate GDPmp by expenditure method as well as product and income method...

• 1

Gross value added is Gross domestic product.

GVA/GDP at MP = Value of Output + change in stock - intermediate cost

GVA/GDP at FC = GVA at MP - Net indirect tax( indirect tax - subsidies)
• -3

GVAmp = sales +chanhe in stock - intermediate consumption

GVAfc = GVAmp - net indirect tax

( the best easiets way 2 calculte them is

first calculate GVOmp = Sales + Change in stock

then convert them one by one i.e.

GVOmp - Intermediate consumption = GVAmp -Net indirect tax = GVAfc - Depriciation = NVAfc )

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