The foreign exchange rate tells you that a salary of 2000 US Dollars can be converted into 160,000 INR (Indian Currency). What it doesn’t tell you is the 2000 USD in America can never get you the same standard of living as 160,000 INR does in India. How much money would you need in America to buy the same things that you would buy in India?
This is where Purchasing Power Parity (PPP) comes in. Converting your salary using PPP, instead of the exchange rate, helps to give you a better approximation of what your standard of living would be like in two different countries. This can be handy to know if you’re planning on moving, a remote worker, sending money abroad, or many other things.
All data used in the calulations is realtime and fetched from the The World Bank API.
I hope our purchasing power parity calculator is useful to you. Also try our Online Image Compressor tool. It’s free and awesome.