What Your Money Really Buys Abroad: The Burger & Coffee Index
Exchange rates don't tell the whole story. Our calculator shows what your pounds actually buy in different countries using purchasing power parity.
You convert £1,000 to Euros and get around 1,170 EUR. But here's what the exchange rate doesn't tell you: that 1,170 EUR buys you a LOT more in Portugal than in Norway.
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:
| Country | You Get | A Pint Costs | Pints You Can Buy |
|---|---|---|---|
| Norway | 14,000 NOK | 110 NOK | 127 pints |
| Portugal | 1,170 EUR | 3.50 EUR | 334 pints |
Same £1,000. 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 to Polish Zloty, we show:
- Exchange rate result: ~5,100 PLN
- "Feels Like": ~7,600 PLN worth of buying power
That's because things cost less in Poland. Your pounds stretch further.
Try the Purchasing Power Calculator
The Big Mac Index Explained
The Economist (a British publication!) created the "Big Mac Index" in 1986 as a fun way to measure purchasing power. The idea: a Big Mac is made the same way everywhere, so price differences reflect cost-of-living differences.
| Country | Big Mac Price (GBP equivalent) |
|---|---|
| Switzerland | £6.80 |
| United Kingdom | £4.49 |
| Spain | £4.20 |
| Poland | £3.10 |
If you earn in pounds and spend in Poland, your money goes 45% further on everyday goods.
Where Your Pound Goes Furthest
Based on purchasing power parity, here's where £1,000 "feels like":
| Country | Feels Like |
|---|---|
| Switzerland | £680 |
| United States | £900 |
| Spain | £1,200 |
| Portugal | £1,300 |
| Poland | £1,500 |
| Thailand | £2,000 |
This is why Brits love Spain and Portugal - beyond the sunshine, the purchasing power is brilliant.
How to Use This for Holiday 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 +30%, your budget goes 30% further
Example: Planning a fortnight in Portugal vs Switzerland?
- £2,000 in Portugal feels like £2,600 of buying power
- £2,000 in Switzerland feels like £1,360 of buying power
That's a £1,240 "real" difference in holiday lifestyle.
The Expat Calculation
This is why many Brits retire to Spain or Portugal. A £1,500/month pension:
| Country | Local Value | Feels Like |
|---|---|---|
| Spain | 1,750 EUR | £1,950 |
| Portugal | 1,750 EUR | £2,000 |
| Thailand | 67,000 THB | £3,000 |
Your fixed income buys a better lifestyle in countries with lower costs of living.
What About Quality?
PPP measures quantity, not quality. A €3 coffee in Lisbon isn't worse than a £4.50 coffee in London - it's often just cheaper locally.
Some things remain globally priced:
- Electronics (iPhones cost the same everywhere)
- Imported luxury goods
- International flights
Local services, food, and rent show the biggest PPP differences.
Try It Yourself
Our calculator shows the "Feels Like" value for any currency conversion:
- Enter your amount in GBP
- Select your destination currency
- See both the exchange rate AND purchasing power
The difference might surprise you.