Gross domestic product (GDP) is the measure of the market value of all final goods and services produced within Iowa reporting using an annual rate. In concept, an industry's GDP by state, referred to as its "value added", is equivalent to its gross output (sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (consumption of goods and services purchased from other U.S. industries or imported). Iowa GDP excludes the compensation of federal civilian and military personnel stationed abroad and government consumption of fixed capital for military structures located abroad and for military equipment, except office equipment.

Real GDP is an inflation-adjusted measure of Iowa's gross product that is based on national prices for the goods and services produced within Iowa.