Enter an amount and two countries. Household consumption PPP is the right series for pay and day-to-day prices; GDP PPP is for comparing whole economies.
Price of a US $100 basket
A household basket that costs $100 in the United States, converted with consumption PPPs and shown in US dollars at market FX. Below 100 means cheaper than the US.
Is the currency cheap or expensive?
Relative PPP versus the US dollar: implied fair FX is the PPP conversion factor (local units per international dollar). If the market asks for more local currency per dollar than PPP, the currency is undervalued.
All economies with a PPP
| Economy | CCY | Living cost vs US | Cons. PPP | Market FX | vs USD | GDP/capita PPP$ |
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Do-it-yourself Jevons PPP
Price the same items in two places. The geometric mean of the price relatives is the elementary PPP the ICP uses at the basic-heading level when every item is observed in both economies.
Add at least two comparable items. Official World Bank PPPs remain the right figure for GDP and national salary comparisons — this panel is for learning the index.
How this calculator works
A purchasing power parity is a spatial price index and a currency converter. It answers: how many units of currency B buy the same basket that one unit of currency A buys at home? Market exchange rates do not, because they are set in FX markets and ignore non-traded services such as rent, schooling, and haircuts.
- Equivalent salary uses household consumption PPPs (
PA.NUS.PRVT.PP): amountB = amountA × PPPB / PPPA. That is the local pay that finances the same ICP consumption basket. - International dollars are the amount divided by the origin PPP (United States = 1). One PPP$ buys a US-like basket everywhere.
- Price level index is PPP / market FX, United States = 100. India’s 2025 consumption PLI near 23 means a US $100 household basket costs about $23 at market rates.
- Currency fair value treats the PPP conversion factor as the implied LCU per US dollar. If the market FX is higher, the local currency is undervalued on a PPP basis (the Balassa–Samuelson pattern for lower-income economies).
- Jevons basket is the geometric mean of bilateral price relatives — the ICP elementary index when the item sample is complete. Official national PPPs then aggregate those headings with GEKS (Fisher bilateral indexes made transitive).
Source: World Bank World Development Indicators, last updated in this snapshot as shown above, based on the International Comparison Program and Eurostat–OECD PPP programmes. PPPs are national averages: Mumbai is not rural Bihar, and Manhattan is not Mississippi. They are also the wrong tool for converting traded financial assets or import invoices — use the market FX for those.