What is Purchasing Power Parity (PPP)?

Purchasing Power Parity (PPP) is an economic theory that allows the comparison of the purchasing power of various world currencies to one another. It's a way to calculate a 'basket of goods' price to understand what the same lifestyle costs in different countries.

Why should I use PPP instead of market exchange rates for salary comparison?

Market exchange rates fluctuate based on currency traders and interest rates, which doesn't reflect local costs like rent, groceries, or services. PPP provides a more stable and realistic view of your 'Real Worth' or standard of living in a new country.

How accurate are these PPP salary figures?

Our data is based on the World Bank's ICP and current market projections. While highly accurate for macro-economic comparisons, individual lifestyle choices (like choice of neighborhood or family size) can affect your personal parity by about 10-15%.

Relocation Intelligence

Understand Your True Worth Globally

Stop looking at nominal exchange rates. Use Purchasing Power Parity (PPP) to see exactly what your lifestyle costs in 25+ tech hubs.

tune Configure Scenario

Annual Base Salary

From Location (Base)

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To Location (Target)

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info How it works

Base Normalization: Adjusts against the local cost index.
Purchasing Weight: Applies target multiplier to find equivalent buying power.
Parity Identified: Calculates the final standard of living equivalent.

Equivalent Lifestyle Value

What you need to earn in

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vs Market Exchange Rate:

Monthly Equivalent

Daily Pulse

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In Simple Terms: Earning in is exactly equivalent to earning in .

Why? Because the cost of living (rent, groceries, healthcare) is different. We use standard economic "basket of goods" data to show you your True Worth, ignoring volatile stock market exchange rates.

Lifestyle Parity Index

Purchasing Multiplier

Cost Difference

Global Discovery

Select a target ecosystem

The $100,000 Illusion

Raw currency conversion ignores local economics. Let's look at the "Real Worth" of a standard tech salary across two different global hubs.

🇺🇸

San Francisco

High Nominal Earning

Annual Earning $100,000

Avg Rent (2BR) -$4,200/mo

High nominal figure, but 85% absorbed by housing.

🇮🇳

Bengaluru

High Purchasing Power

Equivalent Lifestyle Needs ₹25,50,000

Avg Rent (2BR Eq) -$650/mo eq

Lower nominal value, massive surplus in purchasing power.

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The FX Illusion

Raw currency rates change daily based on speculation. PPP allows you to ignore market volatility and focus on lifestyle equity.

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The Basket Theory

We compare the "Basket of Goods"—housing, healthcare, and food. In ecosystems like India, a Dollar's utility is up to 4x higher.

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Negotiation Power

Armed with PPP numbers, you start demanding "Standard of Living Parity." It's a scientifically backed argument.

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Frequently Asked Questions

PPP is an economic metric used to compare the relative value of currencies by looking at the cost of a fixed "basket of goods" in different countries. It tells you how much your money is actually worth in terms of local consumption.

For personal finance and relocation, absolutely. Exchange rates are volatile and influenced by macro-finance. PPP is based on what you actually spend on rent, bread, and healthcare—the "Real Worth" that defines your daily life.

We synchronize our PPP factors quarterly using adjusted data from the World Bank and current cost-of-living indices to ensure our calculator reflects recent inflationary shifts across global hubs.