Purchasing Power Parity (PPP) Calculation
(Step by step calculation)

 Purchasing Power Parity(PPP) Calculator

Calculates the purchasing power parity along with detailed examples.

Step by step calculation

Purchasing Power Parity Formula 1

Purchasing Power Parity = C1 / C2

Where,

C1 is Cost of Good X in Currency 1

C2 is Cost of Good X in Currency 2

Step by step calculation

Formula Used In This Example

Cost of Good X in Country 1 in Country 1 Currency = Cost of Good X in Country 1 in Country 2 Currency x Exchange Rate From Country 2 Currency to Country 1 Currency

Purchasing Power Parity (PPP) = Cost of Good X in Country 1 in Country 1 Currency / Cost of Good X in Country 2 in Country 2 Currency

Example

Cost of Iphone in India in INR = Cost of Iphone in India in USD x Exchange Rate From INR to USD

Purchasing Power Parity (PPP) = Cost of Iphone in India in INR / Cost of Iphone in U.S in USD