This ppp (purchasing power parity) calculator takes the figures you already have and applies the relationship behind ppp (purchasing power parity) calculations for you, giving adjusted salary and ppp from salary, source country, target country and exchange rate.
What Is the PPP (purchasing Power Parity) Calculator?
The ppp (purchasing power parity) calculator takes salary, source country, target country and exchange rate and turns them into adjusted salary and ppp.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the PPP (purchasing Power Parity) Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with salary set to 10, source country set to 90.5,1.44,DOL, target country set to 90.5,1.44,DOL, the calculator returns ppp of add the values above, and adjusted salary of -, and adjusted salary (amount local2) of -. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out adjusted salary?
Enter salary, source country, target country and exchange rate. The calculator then works through the relationship and reports adjusted salary and ppp.
What does the ppp (purchasing power parity) actually calculate?
It takes salary, source country, target country and exchange rate and converts them into adjusted salary and ppp using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter salary?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.