What a PPP conversion tells you
An exchange-rate conversion tells you how many dollars your rupees buy at the bank. It does not tell you how far those dollars go once you live abroad, where rent, food and services cost far more. Purchasing power parity compares what a common basket of goods and services costs in each country, so the answer is closer to 'what salary gives me the same life there'.
Equivalent abroad = International dollars × Country PPP factor
Example: ₹12 lakh a year
With India's PPP factor around 22.5 rupees per international dollar, ₹12 lakh is about 53,000 international dollars, which is also the US equivalent. At the market exchange rate the same salary is under US$14,000. The gap is the reason a US offer that looks enormous in rupees can feel ordinary once you are paying American rent.
What PPP doesn't capture
- Factors are national averages; New York or London cost far more than the country average.
- Taxes, healthcare, childcare and education costs vary hugely and are not fully reflected.
- Savings you send home are worth the exchange rate, not the PPP rate.
The factors in the calculator are rounded approximations based on World Bank International Comparison Program data; edit them if you have a more recent figure.
Frequently asked questions
What is PPP salary?
The salary in another country that buys the same standard of living as your current salary, based on purchasing power parity rather than exchange rates.
Why is the PPP figure higher than the exchange-rate figure?
Most goods and services cost less in India, so each rupee buys more locally than its exchange rate suggests.
Is PPP useful for evaluating a job abroad?
As a first check, yes. Then look at city-level rent, taxes and what you plan to save, since savings are converted at the market rate.