Compare what your salary can really buy around the world
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See how far your salary goes in different countries based on Purchasing Power Parity
Purchasing Power Parity (PPP) is an economic concept that allows for a more accurate comparison of living standards across countries. Unlike market exchange rates, which can fluctuate due to currency speculation, interest rates, and other factors, PPP accounts for the relative cost of living and inflation in different countries.
When considering job opportunities abroad or comparing global salaries, using market exchange rates can be misleading. For example, a $100,000 salary in New York converted to Indian Rupees using market exchange rates might seem like an enormous sum, but it doesn't account for the dramatically different costs of living between these locations.
PPP conversion factors help you understand the real purchasing power of your salary in different countries by accounting for:
Our Global Salary PPP Calculator uses the latest Purchasing Power Parity data to provide accurate salary comparisons across countries. Here's how it works:
Our calculator uses the following formula to convert salaries:
Target Salary = (Source Salary / Source PPP Factor) × Target PPP Factor
For example, if you earn $100,000 in the United States and want to know the equivalent purchasing power in India:
This means that ₹2,140,000 in India would provide roughly the same standard of living as $100,000 in the United States, accounting for price differences in housing, food, transportation, and other goods and services.
What's the difference between market exchange rates and PPP?
Market exchange rates reflect the value at which currencies trade on international markets, influenced by factors like interest rates, economic stability, and trade balances. PPP, on the other hand, accounts for the actual purchasing power of a currency within its local economy, making it more accurate for comparing living standards.
How often is the PPP data updated?
Our calculator uses PPP data that is updated annually based on the most recent World Bank International Comparison Program (ICP) data and supplemented with data from the OECD and IMF.
Is PPP perfect for comparing salaries?
While PPP provides a much better comparison than market exchange rates, it's not perfect. PPP calculations are based on a basket of goods and services that may not perfectly match your personal spending habits. Additionally, there can be regional variations within countries that PPP doesn't capture.
Can I use this calculator for negotiating remote work salaries?
Yes! Our calculator is an excellent tool for both employers and employees in negotiating fair compensation for remote work across different countries. It helps establish salary benchmarks that account for local costs of living.
Does the calculator account for taxes?
No, our current calculator provides pre-tax PPP comparisons. Tax rates vary significantly across countries and depend on personal circumstances, so we recommend consulting with a tax professional for after-tax comparisons.
Our Global Salary PPP Calculator was developed to help professionals, expatriates, remote workers, and companies make more informed decisions about international compensation.
The PPP conversion factors used in our calculator are derived from:
Our calculator is especially useful for: