Purchasing Power Parity (PPP) compares currencies by what they can buy locally, not by forex rates. It measures how much of a target currency is needed to purchase the same goods and services that one unit of the base currency can buy.
Use the PPP rate (target currency per 1 unit of base currency) to estimate locally equivalent prices, revenues, and profits. This helps founders replicate business models across different markets without currency-exchange distortions.
Auto-Calculation: The PPP rate automatically updates when you change countries or currencies, based on World Bank and OECD data (2023-2024). You can manually edit the rate at any time if you have more accurate regional data.
Note: PPP rates are estimates and can vary based on the source and time period. Consider them as guidelines rather than exact conversions.