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
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