Why purchasing power matters

Exchange rates tell you how currencies trade in markets. Purchasing Power Parity (PPP) estimates how many units of a currency buy a similar basket of goods and services across countries.

This calculator uses World Bank PPP conversion factors (PA.NUS.PPP) so you can compare what a salary feels like in another country — not what a bank would convert it to today.

We also layer illustrative shares of salary for tax, rent, commute, and food. Those percentages are approximate planning aids, not official tax tables or cost-of-living indexes.

The “better option” verdict compares PPP-adjusted leftover income after those estimated costs, so both leftover percentage and international-dollar leftover stay visible.