Macroeconomics
Economic Growth Accounting Calculator
Decompose output growth into capital, labour and total-factor-productivity contributions.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Understand Growth accounting
One idea, three depths
Choose how deeply to explain Growth accounting
Growth accounting: Decompose output growth into capital, labour and total-factor-productivity contributions.
Age 5Explain it to a 5-year-oldStart with a picture
Imagine using Growth accounting to answer this question: decompose output growth into capital, labour and total-factor-productivity contributions? Enter Capital income share, Capital input growth, Labour input growth, and 1 other input; the calculator shows Estimated output growth. Try changing one number and watch what happens to Estimated output growth. The answer tells you Estimated output growth.
Age 15Explain it to a 15-year-oldConnect it to the formula
Growth accounting is a decomposition, not proof of causality. Measurement quality and factor-share assumptions materially affect the residual. The rule is Output growth = capital share × capital growth + labour share × labour growth + TFP growth. Its input values are Capital income share (%), Capital input growth (%), Labour input growth (%), TFP growth (%), and the main result is Estimated output growth. Try changing one number and watch what happens to Estimated output growth.
CollegeExplain it at college levelState the model precisely
This calculator evaluates a macroeconomics relationship while holding unmodelled conditions constant. The implemented relation is Output growth = capital share × capital growth + labour share × labour growth + TFP growth, evaluated from Capital income share (%), Capital input growth (%), Labour input growth (%), TFP growth (%) to produce Estimated output growth. Growth accounting is a decomposition, not proof of causality. Measurement quality and factor-share assumptions materially affect the residual. The result depends on comparable definitions, units, populations and time periods. It estimates a relationship; it does not establish causation or replace current primary data.
The economic question
Decompose output growth into capital, labour and total-factor-productivity contributions.
Why this relationship is useful
Growth accounting is a decomposition, not proof of causality. Measurement quality and factor-share assumptions materially affect the residual.
Inputs that must be comparable
- Capital income share (minimum 0, maximum 100) measured in %.
- Capital input growth measured in %.
- Labour input growth measured in %.
- TFP growth measured in %.
Use one market, firm, population and time period throughout; mixing definitions can make a correctly calculated number economically meaningless.
The model
Output growth = capital share × capital growth + labour share × labour growth + TFP growth
From inputs to output
The calculator combines Capital income share, Capital input growth, Labour input growth, TFP growth and reportsEstimated output growth together with Capital contribution, Labour contribution, TFP contribution. Change one assumption at a time to identify what actually drives the estimate.
How to read Estimated output growth
Read the sign, magnitude, unit and period together. The result quantifies the relationship in “decompose output growth into capital, labour and total-factor-productivity contributions”; it does not by itself prove that one input caused another.
Where interpretation can fail
Do not use the result when the input definitions, units or formula assumptions do not match the real situation. This is an educational model, not financial, investment, tax or policy advice; verify material decisions against primary data and professional guidance.
Supporting sourcesAcademic referencesPrimary standards, textbooks and complete citations
Standards, reading and academic references
Use the calculator as the worked interaction, then consult the primary standards and academic textbooks listed below. MW SysArc links to the original sources; the explanation on this page is original and does not reproduce them.
Principles of Economics 3e
Read the free OpenStax economics textbookCite this book
- APA 7
- Greenlaw, S. A., Shapiro, D., & MacDonald, D. (2022). Principles of economics 3e. OpenStax. https://openstax.org/books/principles-economics-3e/pages/1-introduction
- MLA 9
- Greenlaw, Steven A., et al. Principles of Economics 3e. OpenStax, 2022, https://openstax.org/books/principles-economics-3e/pages/1-introduction.
- Chicago author-date
- Greenlaw, Steven A., David Shapiro, and Daniel MacDonald. 2022. Principles of Economics 3e. Houston, TX: OpenStax. https://openstax.org/books/principles-economics-3e/pages/1-introduction.
OpenStax entries are free to read online. Follow the licence shown on each linked source before redistributing or adapting its content.
Reuse the page responsiblyCite this pageAPA, MLA, Chicago, Harvard, BibTeX and RIS
These formats cite this calculator page itself. They are separate from the academic references above, which support the mathematical method and terminology.
APA 7
MW SysArc. (2026, July 21). Economic Growth Accounting Calculator. MW SysArc Tools. https://economics.mwsysarc.com/macro/growth-accounting
MLA 9
MW SysArc. “Economic Growth Accounting Calculator.” MW SysArc Tools, 21 July 2026, https://economics.mwsysarc.com/macro/growth-accounting. Accessed 30 Aug. 2026.
Chicago 17
MW SysArc. “Economic Growth Accounting Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 30, 2026. https://economics.mwsysarc.com/macro/growth-accounting.
Harvard
MW SysArc (2026) ‘Economic Growth Accounting Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://economics.mwsysarc.com/macro/growth-accounting (Accessed: 30 August 2026).
BibTeX and RIS records
BibTeX
@misc{mwsysarc_growth_accounting_2026,
author = {{MW SysArc}},
title = {Economic Growth Accounting Calculator},
howpublished = {MW SysArc Tools},
year = {2026},
url = {https://economics.mwsysarc.com/macro/growth-accounting},
note = {Published July 21, 2026; accessed August 30, 2026}
}RIS
TY - ELEC
AU - MW SysArc
TI - Economic Growth Accounting Calculator
T2 - MW SysArc Tools
PY - 2026
DA - 2026-07-21
Y2 - 2026-08-30
UR - https://economics.mwsysarc.com/macro/growth-accounting
N1 - Published July 21, 2026
ER -Clear answers
Frequently asked questions
What does the Growth accounting do?
Decompose output growth into capital, labour and total-factor-productivity contributions.
How does the Growth accounting work?
The calculator applies this formula: Output growth = capital share × capital growth + labour share × labour growth + TFP growth. Growth accounting is a decomposition, not proof of causality. Measurement quality and factor-share assumptions materially affect the residual.
What can I learn from the Growth accounting?
It helps you explore the relationship described by this tool: Decompose output growth into capital, labour and total-factor-productivity contributions. Change one input at a time to observe how it affects the result.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as an estimate or educational aid. Check important financial, business or policy decisions with qualified sources and current data.
Last reviewed . Calculations tested .