This calculator compares the purchasing power parity of money between two countries. It determines the relative cost of goods and services in each country, allowing you to assess the real exchange rate and compare standards of living.
Start with your values, or try a preset.
Enter Price of a Basket of Goods in Country A (USD), Price of the Same Basket of Goods in Country B (Local Currency), and Nominal Exchange Rate (Local Currency per USD) in the units shown.
Read Purchasing Power Parity Exchange Rate (Local Currency per USD) and PPP Index (Country B) in the results panel. Results update as you change the inputs.
Choose a preset to load an example, then adjust the values for your situation.
See the inputs and their calculated results.
Price of a Basket of Goods in Country A (USD): 100 USD; Price of the Same Basket of Goods in Country B (Local Currency): 400 Local Currency; Nominal Exchange Rate (Local Currency per USD): 5 Local Currency/USD
Purchasing Power Parity Exchange Rate (Local Currency per USD): 4 Local Currency/USD; PPP Index (Country B): 80 %
Price of a Basket of Goods in Country A (USD): 100 USD; Price of the Same Basket of Goods in Country B (Local Currency): 500 Local Currency; Nominal Exchange Rate (Local Currency per USD): 5 Local Currency/USD
Purchasing Power Parity Exchange Rate (Local Currency per USD): 5 Local Currency/USD; PPP Index (Country B): 100 %
Price of a Basket of Goods in Country A (USD): 100 USD; Price of the Same Basket of Goods in Country B (Local Currency): 600 Local Currency; Nominal Exchange Rate (Local Currency per USD): 5 Local Currency/USD
Purchasing Power Parity Exchange Rate (Local Currency per USD): 6 Local Currency/USD; PPP Index (Country B): 120 %
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