What is Purchase Power Parity?

Purchasing power parity (PPP) is a money conversion rate that shows the ratio of the amount of money needed to buy the same goods and services in different countries. PPPs are price relatives that eliminate differences in price levels between countries to equalize the purchasing power of different currencies.

The basic tenet of purchasing power parity, or PPP, is that no one in Somalia will be persuaded to purchase anything at a reasonable price in Switzerland.

Though it’s an extreme example, you understand the point.

The apparent cause of this discrepancy is that people’s purchasing power varies globally. There are several indexes to quantify this phenomenon; the Big Mac Index is the most well-known in popular culture.

All our prices are listed in United States Dollars (USD) but if you live outside the United States, you may be eligible for special PPP discounts. We offer PPP discounts ranging from 10% to 60% off our certification training and platform plans.

Purchasing Power Parity: how it is calculated

Each nation is assigned to one of the parity groups as follows:

Parity group: 0.2-0.3 (Discount applied 60%)

Afghanistan – Egypt – Iran – Kyrgyzstan – Sri Lanka – Bhutan – Laos – Lebanon – Libya – Myanmar – Pakistan – Sierra Leone – Tajikistan – Nepal – Uzbekistan – Sudan – India – Madagascar – Turkey

Parity group: 0.3-0.4 (Discount applied 50%)

Albania – Bosnia and Herzegovina – Cameroon – Bangladesh – Burkina Faso – Benin – Jordan – Burundi – Colombia – Côte d’Ivoire – Fiji – Ethiopia – Georgia – Comoros – Lesotho – Cambodia – Armenia – Bolivia – Belarus – Algeria – Eritrea – Ghana – Gambia – Guinea-Bissau – Indonesia – Kenya – Kazakhstan – Moldova – North Macedonia – Mali – Malawi – Malaysia – Mozambique – Nigeria – Nicaragua – Philippines – Paraguay – Rwanda – Thailand – Tanzania – Ukraine – Uganda – Vietnam – Mongolia – Mauritania – Mauritius – Somalia – Tunisia – Zambia – Montenegro – Romania – Serbia – Senegal – Morocco – Niger – Suriname – Eswatini – Togo

Parity group: 0.4-0.5 (Discount applied 50%)

Ecuador – Bulgaria – Croatia – Botswana – Angola – Azerbaijan – Central African Republic – Cabo Verde – Guyana – Hungary – Equatorial Guinea – Honduras – Bahrain – Congo (the Democratic Republic of the) – Dominican Republic – Guinea – Liberia – Panama – Namibia – Peru – Poland – Seychelles – El Salvador – Taiwan – Maldives – Chad – Yemen – South Africa – Russia

Parity group: 0.5-0.6 (Discount applied 40%)

Greece – Saint Kitts and Nevis – Argentina – Brazil – China – Djibouti – Iraq – Jamaica – Guatemala – Lithuania – Chile – Costa Rica – Czechia – Gabon – Grenada – Haiti – Latvia – Sao Tome and Principe – Saint Vincent and the Grenadines – Portugal – Mexico – Saudi Arabia – Slovenia – Slovakia – Turkmenistan – Brunei – Macao – Timor-Leste

Parity group: 0.6-0.7 (Discount applied 20%)

United Arab Emirates – Spain – Aruba – Cyprus – Estonia – Italy – South Korea – Belize – Congo – Malta – Singapore – Dominica – Tonga – Venezuela – Samoa – Oman – Zimbabwe

Parity group: 0.7-0.8

Austria – Japan – Belgium – Bahamas – Germany – France – Kiribati – Kuwait – Hong Kong – Saint Lucia – Antigua and Barbuda – Qatar – Papua New Guinea – Trinidad and Tobago – Uruguay

Parity group: 0.8-0.9

United Kingdom – Ireland – Luxembourg – Finland – Palau – Solomon Islands – Puerto Rico – Netherlands – Sweden – Marshall Islands – San Marino

Parity group: 0.9-1.0

Canada – Denmark – Micronesia (Federated States of) – United States of America – South Sudan – Vanuatu – Norway – Nauru – New Zealand – Tuvalu

Parity group: 1.0-1.1

Australia – Iceland

Parity group: 1.1-1.2

Switzerland – Israel – Barbados

If you'd like to take advantage of these discounts, please drop us a note at team@leanstack.com.

‍

‍