BCB Elevate Trading

Macroeconomics Tool

Purchasing Power
Parity Calculator

Compare the estimated purchasing power of money between selected countries. Use the result as a starting point, then verify current rates and local costs before making a decision.

Open the PPP calculatorRead the PPP guide
Countries
172
Comparison
PPP
PPP data
2025
Exchange rates
Daily
Quick comparisonWorld Bank PPP
USD
From
To

₹19,839

buys in India what $1,000 buys in the United States. Prices there are 21% of prices in the United States, so money goes 4.8× further.

Open the full PPP calculator

Data note: PPP figures come from the World Bank International Comparison Program (household consumption, 2025 estimates) and exchange rates update daily (last 14 Oct 2026). Results are national averages, so check local prices, rent and taxes before making a decision.

What $1,000 in the United States buys around the world

Each bar shows local prices compared with the US. Left of the line is cheaper, right is pricier.

  1. Switzerland128%CHF 1,066
  2. United Kingdom93%£702
  3. Germany80%€719
  4. United Arab Emirates69%AED 2,527
  5. Japan65%¥103,337
  6. Mexico62%$11,309
  7. Thailand32%฿10,606
  8. Philippines33%₱20,534
  9. India21%₹19,839
  10. Egypt15%E£7,722

Prices as a share of US prices, and the local amount that buys the same as $1,000 in the US. Compare all 172 countries

The Ultimate Purchasing Power Parity (PPP) Guide

If you are a remote worker, digital nomad, or an HR manager hiring internationally, relying solely on nominal market exchange rates is a massive mistake. To accurately compare salaries and the true cost of living, you must use a PPP Calculator.

Location Arbitrage

Discover the true purchasing power of your income. Earning $50,000 in San Francisco provides a completely different standard of living than earning the exchanged equivalent in Bali, Indonesia.

How to Read the Estimate

Use the result to compare purchasing-power scenarios, then verify current local prices, taxes, and official data before making a salary, relocation, or investment decision.

What is Purchasing Power Parity?

Purchasing Power Parity (PPP) is a macroeconomic theory that compares different countries' currencies through a "basket of goods" approach. According to this concept, two currencies are in equilibrium—or at parity—when a basket of goods (like food, rent, electronics) is priced the same in both countries, taking into account the exchange rate.

The famous "Big Mac Index" created by The Economist is a lighthearted version of a PPP calculator. It compares the price of a McDonald's Big Mac across the world to see which currencies are overvalued or undervalued relative to the US Dollar.

Market Exchange Rate vs. PPP Exchange Rate

Why shouldn't you just use Google's currency converter? Because the Market Exchange Rate is dictated by financial markets, interest rates, and speculative trading. It fluctuates daily.

The PPP Exchange Rate reflects the relative cost of goods and services in a country. This calculator gives an illustrative comparison; use current local pricing and authoritative data when evaluating an actual salary offer or relocation.

How Our PPP Calculator Works

  1. Step 1: Enter your current or target Salary/Income amount.
  2. Step 2: Select the Base Country (where the salary is currently paid).
  3. Step 3: Select the Target Country (where you want to move or compare).
  4. Step 4: Review the illustrative purchasing-power estimate, then compare it with current exchange rates, local prices, and official data relevant to your decision.

Ready to compare your own numbers?

Open the PPP calculator