What Your Money Really Buys Abroad: The Burger & Coffee Index
Exchange rates don't tell the whole story. Our calculator shows what your Aussie dollars actually buy in different countries using purchasing power.
You convert $1,000 AUD to Indonesian Rupiah and get around 10 million IDR. Sounds like a lot! But here's what the exchange rate doesn't tell you: that money buys you a LOT more in Bali than the same amount would in Tokyo.
This is the concept behind the famous "Big Mac Index" - and we've built it into our currency converter.
The Problem With Exchange Rates
Exchange rates tell you how much foreign currency you'll get. They don't tell you what that currency will actually BUY.
Consider two holidays with $1,000 AUD:
| Country | You Get | A Meal Costs | Meals You Can Buy |
|---|---|---|---|
| Japan | 100,000 JPY | 1,200 JPY | 83 meals |
| Bali | 10M IDR | 80,000 IDR | 125 meals |
Same $1,000 AUD. Very different holidays.
We Built a "Feels Like" Calculator
Our Currency Converter now shows purchasing power parity (PPP) - what your money actually BUYS, not just what it converts to.
When you convert $1,000 AUD to Indonesian Rupiah, we show:
- Exchange rate result: ~10,000,000 IDR
- "Feels Like": ~18,000,000 IDR worth of buying power
That's because things cost less in Indonesia. Your Aussie dollars stretch much further.
Try the Purchasing Power Calculator
The Big Mac Index Explained
The Economist created the "Big Mac Index" in 1986 to measure purchasing power. A Big Mac is made the same way everywhere, so price differences reflect real cost-of-living differences.
| Country | Big Mac Price (AUD equivalent) |
|---|---|
| Switzerland | $12.50 |
| Australia | $7.55 |
| Japan | $4.80 |
| Indonesia | $3.60 |
If you earn in AUD and spend in Bali, your money goes 2x further on everyday goods.
Where Your Aussie Dollar Goes Furthest
Based on purchasing power parity, here's where $1,000 AUD "feels like":
| Country | Feels Like |
|---|---|
| Switzerland | $600 |
| Japan | $900 |
| Thailand | $1,600 |
| Bali | $1,800 |
| Vietnam | $2,000 |
| India | $2,200 |
This is why Aussies love Southeast Asia - beyond the beaches, the purchasing power is incredible.
How to Use This for Travel Budgeting
Instead of budgeting based on exchange rates, budget based on purchasing power:
- Convert your daily budget to the local currency
- Check the PPP multiplier in our calculator
- Adjust expectations - if PPP shows +80%, your budget goes 80% further
Example: Planning a fortnight in Bali vs Japan?
- $3,000 AUD in Bali feels like $5,400 of buying power
- $3,000 AUD in Japan feels like $2,700 of buying power
That's a $2,700 "real" difference in holiday lifestyle.
The Grey Nomad Calculation
Many Aussies dream of retiring in Southeast Asia. A $2,500 AUD/month pension:
| Country | Feels Like |
|---|---|
| Thailand | $4,000 AUD |
| Bali | $4,500 AUD |
| Vietnam | $5,000 AUD |
| Philippines | $4,200 AUD |
Your super goes significantly further in these countries.
Popular Aussie Destinations Compared
| Destination | PPP Advantage | Best For |
|---|---|---|
| Bali | +80% | Beaches, culture |
| Thailand | +60% | Food, beaches |
| Vietnam | +100% | Adventure, food |
| Japan | -10% | Culture, skiing |
| New Zealand | +5% | Nature, similar culture |
| USA | -5% | Cities, road trips |
What About Quality?
PPP measures quantity, not quality. A 50,000 IDR meal in Bali isn't worse than a $25 meal in Sydney - local costs are just lower.
Some things remain globally priced:
- Electronics (iPhones cost the same everywhere)
- Imported luxury goods
- International flights
Local services, food, and accommodation show the biggest PPP differences.
Try It Yourself
Our calculator shows the "Feels Like" value for any currency conversion:
- Enter your amount in AUD
- Select your destination currency
- See both the exchange rate AND purchasing power
The difference might surprise you.