Vol. III · No. 47 · Q1 2026 EditionUpdated Weekly · ECB FX

WorthOf

A global ledger of salary, tax & the price of living

Defined Term

Purchasing Power Parity (PPP)

Definition

A method to compare real incomes across countries by adjusting for local prices.

Purchasing power parity adjusts income figures to reflect what they can actually buy locally. A salary of €50,000 in Lisbon and €50,000 in Zurich sound identical but afford vastly different lifestyles — Switzerland's cost of living is roughly 90% higher.

PPP-adjusted comparisons reveal true material living standards independent of nominal income figures. WorthOf's PPP index is calculated as (net monthly ÷ local COL index) × 100, with New York = 100 as baseline.

A score of 68 means you can afford 68% of the New York lifestyle at that salary in that city.

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