What Your Money Really Buys Abroad: The Burger & Coffee Index
Exchange rates don't tell the whole story. Our calculator shows what your rupees actually buy in different countries using purchasing power parity.
You convert Rs 1,00,000 to US Dollars and get around $1,200. That sounds like a lot less! But here's what the exchange rate doesn't tell you: things in India are much cheaper, so your rupees have more purchasing power at home than abroad.
Understanding this concept - purchasing power parity - is crucial for Indians travelling, studying, or working abroad.
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 Rs 1,00,000:
| Location | Equivalent | A Meal Costs | Meals You Can Buy |
|---|---|---|---|
| India | Rs 1,00,000 | Rs 200 | 500 meals |
| USA | $1,200 | $15 | 80 meals |
| UK | £950 | £12 | 79 meals |
Same money. Dramatically different lifestyles.
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 Rs 1,00,000 to USD, we show:
- Exchange rate result: ~$1,200 USD
- "Feels Like": ~$550 USD worth of buying power
That's because things cost more in America. Your rupees don't stretch as far abroad.
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 (INR equivalent) |
|---|---|
| Switzerland | Rs 680 |
| USA | Rs 475 |
| UK | Rs 450 |
| India | Rs 215 |
This shows why studying or living abroad feels so expensive for Indians - your rupees buy less overseas.
What This Means for Indians Going Abroad
Based on purchasing power parity, here's what Rs 10,00,000 "feels like":
| Country | Feels Like |
|---|---|
| USA | Rs 4,50,000 |
| UK | Rs 4,80,000 |
| Germany | Rs 5,20,000 |
| Thailand | Rs 8,50,000 |
| Vietnam | Rs 9,00,000 |
This is why studying in the US or UK is so expensive - not just the fees, but everything costs more relative to India.
For Students Going Abroad
If you're planning to study in the US, UK, or Australia, understand that:
- Your monthly stipend won't buy as much as it would in India
- Living costs are 2-3x higher in purchasing power terms
- Budget accordingly - what costs Rs 500 in India might "feel like" Rs 1,500 abroad
Example: A $1,500/month living budget in the US:
- Converts to Rs 1,25,000
- But "feels like" only Rs 55,000 of Indian buying power
Plan for this gap when budgeting for foreign education.
For NRIs Sending Money Home
The PPP works in reverse too! If you earn abroad and send money to India:
| Your Salary | In India "Feels Like" |
|---|---|
| $5,000/month (USA) | Rs 10,00,000+ |
| £4,000/month (UK) | Rs 9,00,000+ |
| AED 15,000/month (Dubai) | Rs 8,00,000+ |
This is why NRI remittances are so valuable - foreign earnings have massive purchasing power in India.
Where Indian Rupees Go Further
There are some countries where your rupees stretch further:
| Country | PPP Advantage |
|---|---|
| Nepal | +20% |
| Sri Lanka | +15% |
| Vietnam | +10% |
| Thailand | -10% (slightly less) |
For affordable international travel, Southeast Asia offers the best value for Indians.
For Business Travellers
Understanding PPP helps with expense planning:
- USA/Europe: Budget 2-3x your Indian expenses
- Gulf countries: Budget 1.5-2x
- Southeast Asia: Budget similar to India
- Nepal/Sri Lanka: Budget 10-20% less
Try It Yourself
Our calculator shows the "Feels Like" value for any currency conversion:
- Enter your amount in INR
- Select your destination currency
- See both the exchange rate AND purchasing power
The difference will help you budget realistically.