Purchasing Power Parity: what a salary or amount in one country is really worth in another, using World Bank price-level indices — plus the market-rate comparison.
PPP-equivalent amount
How to use this tool
A salary, a price, any sum in the source country’s currency.
26 countries with World Bank price-level indices (2025, US = 100).
The amount in the target currency that buys the same basket — the same standard of living.
The plain exchange-rate conversion alongside, and whether the target currency looks over- or undervalued versus PPP.
Formula & worked example
A $60,000 US salary converts to about 1,214,400 rupees in India on PPP: India’s PPP factor is 23 / 100 x 88 = 20.24, and 60,000 x 20.24 = 1,214,400. At the market rate alone it would be 60,000 x 88 = 5,280,000 rupees, but those buy no more than the PPP figure once local prices are counted.
Limitations — read this before you rely on it
Price-level indices are national averages (World Bank DataBank, 2025 values as published by the reference calculator); city costs, taxes, healthcare and what you save and send home differ sharply. Market rates are approximate and move daily — treat the verdict as an illustration, not a trading signal.
Frequently asked questions
The idea that exchange rates should equalise what money buys: a basket costing $100 in the US should cost the PPP-equivalent amount anywhere else.
Because prices differ: in cheaper countries each local currency unit buys more, so the same standard of living costs fewer market-rate dollars.
The average price of goods and services in a country relative to the US (= 100). India at 23 means the basket costs about 23% of the US price in dollar terms.
If the market rate is above the PPP rate, the target currency buys less abroad than at home and looks undervalued, and vice versa.
As a first check, yes — then adjust for city rent, taxes, healthcare and savings, which national PPP averages do not capture.