What is the formula for net domestic product?

The formula for Net Domestic Product (NDP) is:

[ \text{NDP} = \text{GDP} - \text{Depreciation} ]

where GDP represents Gross Domestic Product, which measures the total value of all goods and services produced in a country, and depreciation accounts for the loss of value of capital goods over time. NDP provides a clearer view of an economy's sustainable economic activity by accounting for the wear and tear on capital assets.