What is Purchasing Power Parity (PPP)?
Purchasing Power Parity (PPP) is an economic metric used to compare the cost of living and economic productivity between countries. It shows how much money is needed in different countries to buy the same basket of goods.
How PPP Calculate Work?
PPP calculation divides the salary by the PPP index of the source country and multiplies it by the PPP index of the destination country.
How to Use PPP Calculator?
- Select your country
- Select the target country
- Enter your salary
- Click calculate
Advantages of PPP Calculator
- Accurate cost of living comparison
- Helpful for job relocation
- Better than forex conversion
Disadvantages of PPP Calculator
- Does not reflect personal lifestyle
- Uses average data
Purchasing Power Parity Impact
PPP impacts consumers, producers, investors, and policymakers by giving a real-world comparison of purchasing power.