PPP Calculator
Compare how far your money goes in different countries using Purchasing Power Parity. Enter a salary or cost amount and the price level indexes for two countries to see the real purchasing power difference.
Purchasing Power Parity (PPP) adjusts for the fact that the same amount of money buys different quantities of goods in different countries. A $75,000 salary in the U.S. does not buy the same lifestyle as $75,000 (converted at market exchange rates) in India, Mexico, or Switzerland because local prices vary enormously.
The price level index measures how expensive a country is relative to a benchmark (typically the U.S. at 100). If a country has a price level of 65, goods and services there cost about 65% of what they cost in the U.S. So your $75,000 would have the purchasing power of about $115,385 in that country.
This matters for several practical decisions. If you are considering a job in another country, the nominal salary is less important than what that salary actually buys. A $50,000 salary in a country with a price level of 50 gives you the same lifestyle as a $100,000 salary in the U.S. Conversely, a $100,000 salary in a country with a price level of 130 feels like earning $77,000 in the U.S.
The World Bank and OECD regularly publish PPP data. Common price level indexes (approximate, US = 100): Switzerland 130, Norway 125, UK 107, Japan 85, South Korea 80, Mexico 47, India 28. These numbers shift over time with inflation and exchange rates.