What Your Money Really Buys Abroad: The Burger & Coffee Index
Exchange rates don't tell the whole story. Our calculator shows what your Canadian dollars actually buy in different countries using purchasing power.
You convert $1,000 CAD to Mexican Pesos and get around 12,500 MXN. But here's what the exchange rate doesn't tell you: that 12,500 MXN buys you a LOT more than the same money would in Switzerland.
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 trips with $1,000 CAD:
| Country | You Get | A Beer Costs | Beers You Can Buy |
|---|---|---|---|
| Switzerland | 650 CHF | 8 CHF | 81 beers |
| Mexico | 12,500 MXN | 45 MXN | 278 beers |
Same $1,000 CAD. Very different vacations.
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 CAD to Mexican Pesos, we show:
- Exchange rate result: ~12,500 MXN
- "Feels Like": ~18,000 MXN worth of buying power
That's because things cost less in Mexico. Your loonies stretch 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 (CAD equivalent) |
|---|---|
| Switzerland | $10.80 |
| Canada | $7.47 |
| Mexico | $4.50 |
| Thailand | $4.20 |
If you earn in CAD and spend in Mexico, your money goes 65% further on everyday goods.
Where Your Loonie Goes Furthest
Based on purchasing power parity, here's where $1,000 CAD "feels like":
| Country | Feels Like |
|---|---|
| Switzerland | $650 |
| United States | $950 |
| Mexico | $1,450 |
| Costa Rica | $1,400 |
| Thailand | $1,900 |
| Vietnam | $2,100 |
This is why Canadian snowbirds love Mexico - beyond the weather, the purchasing power is excellent.
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 +40%, your budget goes 40% further
Example: Planning a month in Mexico vs staying home?
- $3,000 CAD in Mexico feels like $4,350 of buying power
- That's an extra $1,350 of "real" spending power
The Snowbird Calculation
This is why so many Canadians winter in Mexico, Costa Rica, or Portugal. A $2,000 CAD/month pension:
| Country | Feels Like |
|---|---|
| Mexico | $2,900 CAD |
| Portugal | $2,500 CAD |
| Thailand | $3,800 CAD |
Your fixed income buys a significantly better lifestyle in these countries.
What About Quality?
PPP measures quantity, not quality. A 50-peso coffee in Mexico isn't worse than a $6 coffee in Vancouver - local costs are just lower.
Some things remain globally priced:
- Electronics (iPhones cost the same everywhere)
- Imported 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 CAD
- Select your destination currency
- See both the exchange rate AND purchasing power
The difference might surprise you.