What Your Money Really Buys Abroad: The Burger & Coffee Index
Exchange rates don't tell the whole story. Our calculator shows what your dollars actually buy in different countries using purchasing power parity.
You convert $1,000 to Euros and get around 920 EUR. But here's what the exchange rate doesn't tell you: that 920 EUR buys you a LOT more in Portugal than 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 scenarios with $1,000 USD:
| Country | You Get | A Coffee Costs | Coffees You Can Buy |
|---|---|---|---|
| Switzerland | 880 CHF | 6.50 CHF | 135 coffees |
| Poland | 4,000 PLN | 12 PLN | 333 coffees |
Same $1,000. Very 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 $1,000 USD to Polish Zloty, we show:
- Exchange rate result: ~4,000 PLN
- "Feels Like": ~6,000 PLN worth of buying power
That's because things cost less in Poland. Your dollars stretch further.
Try the Purchasing Power Calculator
The Big Mac Index Explained
The Economist 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 (USD equivalent) |
|---|---|
| Switzerland | $8.17 |
| United States | $5.69 |
| Poland | $3.94 |
| India | $2.54 |
If you earn in USD and spend in India, your money goes 2x further on everyday goods.
Where Your Dollar Goes Furthest
Based on purchasing power parity, here's where $1,000 USD "feels like":
| Country | Feels Like |
|---|---|
| Switzerland | $650 |
| United Kingdom | $850 |
| Germany | $950 |
| Spain | $1,100 |
| Poland | $1,500 |
| Thailand | $1,800 |
| India | $2,200 |
This is why digital nomads flock to Southeast Asia and Eastern Europe - not just for adventure, but for purchasing power.
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 +50%, your budget goes 50% further
Example: Planning a month in Portugal vs Switzerland?
- $3,000/month in Portugal feels like $3,600 of buying power
- $3,000/month in Switzerland feels like $2,400 of buying power
That's a $1,200 "real" difference in lifestyle.
The Retirement Arbitrage
This is why many Americans retire abroad. A $2,000/month Social Security check:
| Country | Local Value | Feels Like |
|---|---|---|
| Portugal | 1,840 EUR | $2,400 |
| Mexico | 34,000 MXN | $2,800 |
| Thailand | 70,000 THB | $3,600 |
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 Vietnam isn't necessarily worse than a $7 coffee in New York - it's often just cheaper to produce locally.
Some things remain globally priced:
- Electronics (iPhones cost roughly the same everywhere)
- Imported luxury goods
- International flights
Local services and food show the biggest PPP differences.
Try It Yourself
Our calculator shows the "Feels Like" value for any currency conversion:
- Enter your amount in USD
- Select your destination currency
- See both the exchange rate AND purchasing power
The difference might surprise you.