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Terms of Trade Calculator

Calculate the ratio of export prices to import prices as an index.

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Terms of trade index109.52

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One idea, three depths

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Terms of trade: Calculate the ratio of export prices to import prices as an index.

Age 5Explain it to a 5-year-oldStart with a picture

Imagine using Terms of trade to answer this question: calculate the ratio of export prices to import prices as an index? Enter Export price index and Import price index; the calculator shows Terms of trade index. Try changing one number and watch what happens to Terms of trade index. The answer tells you Terms of trade index.

Age 15Explain it to a 15-year-oldConnect it to the formula

An index above 100 means export prices are high relative to import prices compared with the shared base period. The rule is Terms of trade index = Export price index ÷ import price index × 100. Its input values are Export price index, Import price index, and the main result is Terms of trade index. Try changing one number and watch what happens to Terms of trade index.

CollegeExplain it at college levelState the model precisely

This calculator evaluates a macroeconomics relationship while holding unmodelled conditions constant. The implemented relation is Terms of trade index = Export price index ÷ import price index × 100, evaluated from Export price index, Import price index to produce Terms of trade index. An index above 100 means export prices are high relative to import prices compared with the shared base period. 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

Calculate the ratio of export prices to import prices as an index.

Why this relationship is useful

An index above 100 means export prices are high relative to import prices compared with the shared base period.

Inputs that must be comparable

  • Export price index (minimum 0.01).
  • Import price index (minimum 0.01).

Use one market, firm, population and time period throughout; mixing definitions can make a correctly calculated number economically meaningless.

The model

Terms of trade index = Export price index ÷ import price index × 100

From inputs to output

The calculator combines Export price index, Import price index and reportsTerms of trade index. Change one assumption at a time to identify what actually drives the estimate.

How to read Terms of trade index

Read the sign, magnitude, unit and period together. The result quantifies the relationship in “calculate the ratio of export prices to import prices as an index”; 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.

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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 textbook
Cite 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.

Organizational author: MW SysArc. Published:. Canonical page:https://economics.mwsysarc.com/macro/terms-of-trade-index.

APA 7

MW SysArc. (2026, July 21). Terms of Trade Calculator. MW SysArc Tools. https://economics.mwsysarc.com/macro/terms-of-trade-index

MLA 9

MW SysArc. “Terms of Trade Calculator.” MW SysArc Tools, 21 July 2026, https://economics.mwsysarc.com/macro/terms-of-trade-index. Accessed 31 Aug. 2026.

Chicago 17

MW SysArc. “Terms of Trade Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 31, 2026. https://economics.mwsysarc.com/macro/terms-of-trade-index.

Harvard

MW SysArc (2026) ‘Terms of Trade Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://economics.mwsysarc.com/macro/terms-of-trade-index (Accessed: 31 August 2026).

BibTeX and RIS records

BibTeX

@misc{mwsysarc_terms_of_trade_2026,
  author = {{MW SysArc}},
  title = {Terms of Trade Calculator},
  howpublished = {MW SysArc Tools},
  year = {2026},
  url = {https://economics.mwsysarc.com/macro/terms-of-trade-index},
  note = {Published July 21, 2026; accessed August 31, 2026}
}

RIS

TY  - ELEC
AU  - MW SysArc
TI  - Terms of Trade Calculator
T2  - MW SysArc Tools
PY  - 2026
DA  - 2026-07-21
Y2  - 2026-08-31
UR  - https://economics.mwsysarc.com/macro/terms-of-trade-index
N1  - Published July 21, 2026
ER  -

Clear answers

Frequently asked questions

What does the Terms of trade do?

Calculate the ratio of export prices to import prices as an index.

How does the Terms of trade work?

The calculator applies this formula: Terms of trade index = Export price index ÷ import price index × 100. An index above 100 means export prices are high relative to import prices compared with the shared base period.

What can I learn from the Terms of trade?

It helps you explore the relationship described by this tool: Calculate the ratio of export prices to import prices as an index. 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 .

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