Purchasing Power Calculator

Income in Country A ($):

Income in Country B (Local Currency):

Exchange Rate (B to A):

Cost of Living Index - Country A:

Cost of Living Index - Country B:

Big Mac Price - Country A ($):

Big Mac Price - Country B (Local Currency):

Nominal Income (Country B in A's currency): $0.00

PPP-Adjusted Income (Country B): $0.00

Real Income Ratio: 1.00

Big Mac PPP Exchange Rate: 0.000

Currency Valuation: Fair Value

Purchasing Power Advantage: Neutral

Purchasing Power Parity (PPP): The theory that exchange rates should equalize the price of identical goods across countries.

Real Income: Income adjusted for differences in cost of living, showing actual purchasing power.

Big Mac Index: An informal way to measure PPP by comparing the price of McDonald's Big Mac across countries.

Cost of Living Adjustment: Accounts for different price levels to enable meaningful income comparisons.

Currency Valuation: PPP can indicate if a currency is overvalued or undervalued relative to its fair value.