PPP Calculator is a tool used to compare the relative value of currencies in different countries.
Purchasing Power Parity Converter
Convert your salary from one currency to another currency.
You require a salary of _______ in ‘s local currency to live a similar quality of life as you would with a salary of _______ in ‘s local currency.
It helps in determining the equivalent amount of money needed in one country to purchase the same goods and services in another country, after adjusting for exchange rates and cost of living differences
There are various online PPP calculators available where you can input the currency you’re interested in and compare its purchasing power with other currencies. These calculators often utilize economic data and exchange rates to provide accurate comparisons.
Also use :- Paypal fee calculator
What is Purchasing Power Parity ?
Purchasing Power Parity (PPP) is an economic theory and a method used to compare the relative value of currencies across different countries.
It asserts that in the absence of transportation costs and trade barriers, identical goods should have the same price in different countries when expressed in a common currency.
In other words, PPP suggests that exchange rates should adjust so that a basket of goods and services should cost the same in one country as it does in another after adjusting for the exchange rate.
The idea behind PPP is to eliminate the differences in price levels between countries when comparing living standards and economic performance.
Economists and policymakers often use PPP to make more accurate comparisons of economic indicators like GDP (Gross Domestic Product) and income levels across countries, as nominal exchange rates can sometimes be misleading due to differences in price levels.