Big Mac Index 2023 How To Calculate – Formula Of Big Mac Index
The Big Mac Index 2023 compares the price of a Big Mac in different countries. It’s like comparing apples to apples but with burgers. This comparison helps us understand how overvalued or undervalued a currency is relative to others.
It’s like a Purchasing Power Parity Calculator tool that helps us understand how much money is worth in different countries. Think of it like a price tag on a Big Mac burger. If the same burger costs more in one country and less in another, it can tell us how the money in those places compares.
Let’s see the Big Mac Index 2023, break it down with an explanation of the formula, and check how the calculation is done. The Big Mac Index is often seen as a lighthearted measure of purchasing power parity (PPP)
Big Mac Index 2023 – Table Chart
According to the January 2023 Big Mac index, Switzerland boasts the world’s priciest Big Macs at 7.26 U.S. dollars. Simultaneously, a Big Mac was priced at 5.15 dollars in the United States and 5.29 U.S. dollars in the Euro area.
| # | Country | Big Mac Price |
|---|---|---|
| 1 | Switzerland | $6.71 |
| 2 | Norway | $6.26 |
| 3 | Uruguay | $6.08 |
| 4 | Sweden | $5.59 |
| 5 | Canada | $5.25 |
| 6 | United States of America | $5.15 |
| 7 | Lebanon | $5.08 |
| 8 | Israel | $4.95 |
| 9 | United Arab Emirates | $4.90 |
| 10 | Andorra | $4.77 |
| 11 | Austria | $4.77 |
| 12 | Belgium | $4.77 |
| 13 | Cyprus | $4.77 |
| 14 | Estonia | $4.77 |
| 15 | Finland | $4.77 |
| 16 | France | $4.77 |
| 17 | Germany | $4.77 |
| 18 | Greece | $4.77 |
| 19 | Ireland | $4.77 |
| 20 | Italy | $4.77 |
| 21 | Latvia | $4.77 |
| 22 | Lithuania | $4.77 |
| 23 | Luxembourg | $4.77 |
| 24 | Malta | $4.77 |
| 25 | Monaco | $4.77 |
| 26 | Netherlands | $4.77 |
| 27 | Portugal | $4.77 |
| 28 | Saint Pierre and Miquelon | $4.77 |
| 29 | Saint-Barthélemy | $4.77 |
| 30 | San Marino | $4.77 |
| 31 | Slovakia | $4.77 |
| 32 | Slovenia | $4.77 |
| 33 | Spain | $4.77 |
| 34 | Vatican City | $4.77 |
| 35 | Australia | $4.63 |
| 36 | Argentina | $4.57 |
| 37 | Saudi Arabia | $4.53 |
| 38 | United Kingdom | $4.44 |
| 39 | New Zealand | $4.43 |
| 40 | Brazil | $4.25 |
| 41 | Bahrain | $4.24 |
| 42 | Singapore | $4.24 |
| 43 | Kuwait | $4.23 |
| 44 | Czech Republic | $3.97 |
| 45 | Costa Rica | $3.91 |
| 46 | Nicaragua | $3.87 |
| 47 | Sri Lanka | $3.72 |
| 48 | Oman | $3.69 |
| 49 | Croatia | $3.68 |
| 50 | Chile | $3.66 |
| 51 | Honduras | $3.62 |
| 52 | Poland | $3.59 |
| 53 | Peru | $3.57 |
| 54 | Qatar | $3.57 |
| 55 | People’s Republic of China | $3.56 |
| 56 | South Korea | $3.50 |
| 57 | Thailand | $3.50 |
| 58 | Colombia | $3.48 |
| 59 | Mexico | $3.43 |
| 60 | Guatemala | $3.36 |
| 61 | Jordan | $3.24 |
| 62 | Pakistan | $3.16 |
| 63 | Moldova | $3.11 |
| 64 | Vietnam | $2.95 |
| 65 | Japan | $2.83 |
| 66 | Azerbaijan | $2.77 |
| 67 | Philippines | $2.75 |
| 68 | Hong Kong | $2.68 |
| 69 | Turkey | $2.68 |
| 70 | Hungary | $2.65 |
| 71 | Taiwan | $2.51 |
| 72 | Malaysia | $2.45 |
| 73 | Egypt | $2.43 |
| 74 | India | $2.39 |
| 75 | Indonesia | $2.34 |
| 76 | South Africa | $2.34 |
| 77 | Romania | $2.28 |
| 78 | Venezuela | $1.76 |
Big Mac Index 2023 Index & Price By Country
Check out the Cuntry-wise Big Mac price variations – from Switzerland’s $6.71 to the U.S. at $5.15 per sandwich. Norway and Uruguay follow closely at $6.26 and $6.08. Sweden and Canada rank fourth and fifth at $5.59 and $5.25, while the USA comes sixth. Check below the full Big Mac prices table. You can also check Purchasing Power Parity vs Big Mac Index difference.
| # | Country | Big Mac Price | Big Mac Index |
|---|---|---|---|
| 1 | Switzerland | $6.71 | 30.33% |
| 2 | Norway | $6.26 | 21.63% |
| 3 | Uruguay | $6.08 | 18.15% |
| 4 | Sweden | $5.59 | 8.53% |
| 5 | Canada | $5.25 | 1.97% |
| 6 | United States of America | $5.15 | 0% |
| 7 | Lebanon | $5.08 | -1.40% |
| 8 | Israel | $4.95 | -3.97% |
| 9 | United Arab Emirates | $4.90 | -4.84% |
| 10 | Andorra | $4.77 | -7.47% |
| 11 | Austria | $4.77 | -7.47% |
| 12 | Belgium | $4.77 | -7.47% |
| 13 | Cyprus | $4.77 | -7.47% |
| 14 | Estonia | $4.77 | -7.47% |
| 15 | Finland | $4.77 | -7.47% |
| 16 | France | $4.77 | -7.47% |
| 17 | Germany | $4.77 | -7.47% |
| 18 | Greece | $4.77 | -7.47% |
| 19 | Ireland | $4.77 | -7.47% |
| 20 | Italy | $4.77 | -7.47% |
| 21 | Latvia | $4.77 | -7.47% |
| 22 | Lithuania | $4.77 | -7.47% |
| 23 | Luxembourg | $4.77 | -7.47% |
| 24 | Malta | $4.77 | -7,47% |
| 25 | Monaco | $4.77 | -7.47% |
| 26 | Netherlands | $4.77 | -7.47% |
| 27 | Portugal | $4.77 | -7.47% |
| 28 | Saint Pierre and Miquelon | $4.77 | -7.47% |
| 29 | Saint-Barthélemy | $4.77 | -7.47% |
| 30 | San Marino | $4.77 | -7.47% |
| 31 | Slovakia | $4.77 | -7.47% |
| 32 | Slovenia | $4.77 | -7.47% |
| 33 | Spain | $4.77 | -7.47% |
| 34 | Vatican City | $4.77 | -7.47% |
| 35 | Australia | $4.63 | 10.18% |
| 36 | Argentina | $4.57 | -11.27% |
| 37 | Saudi Arabia | $4.53 | -12.09% |
| 38 | United Kingdom | $4.44 | -13.79% |
| 39 | New Zealand | $4.43 | -14.04% |
| 40 | Brazil | $4.25 | -17.53% |
| 41 | Bahrain | $4.24 | -17.59% |
| 42 | Singapore | $4.24 | -17.66% |
| 43 | Kuwait | $4.23 | -17.88% |
| 44 | Czech Republic | $3.97 | -22.88% |
| 45 | Costa Rica | $3.91 | -24.12% |
| 46 | Nicaragua | $3.87 | -24.80% |
| 47 | Sri Lanka | $3.72 | -27.72% |
| 48 | Oman | $3.69 | -28.38% |
| 49 | Croatia | $3.68 | -28.46% |
| 50 | Chile | $3.66 | -28.89% |
| 51 | Honduras | $3.62 | -29.79% |
| 52 | Poland | $3.59 | -30.32% |
| 53 | Peru | $3.57 | -30.67% |
| 54 | Qatar | $3.57 | -30.69% |
| 55 | People’s Republic of China | $3.56 | -30.93% |
| 56 | South Korea | $3.50 | -32% |
| 57 | Thailand | $3.50 | -32.12% |
| 58 | Colombia | $3.48 | -32.41% |
| 59 | Mexico | $3.43 | -33.41% |
| 60 | Guatemala | $3.36 | -34.67% |
| 61 | Jordan | $3.24 | -37.11% |
| 62 | Pakistan | $3.16 | -38.71% |
| 63 | Moldova | $3.11 | -39.63% |
| 64 | Vietnam | $2.95 | -42.79% |
| 65 | Japan | $2.83 | -45.07% |
| 66 | Azerbaijan | $2.77 | -46.26% |
| 67 | Philippines | $2.75 | -46.51% |
| 68 | Hong Kong | $2.68 | -48.06% |
| 69 | Turkey | $2.68 | -48.04% |
| 70 | Hungary | $2.65 | -48.59% |
| 71 | Taiwan | $2.51 | -51.31% |
| 72 | Malaysia | $2.45 | -52.44% |
| 73 | Egypt | $2.43 | -52.85% |
| 74 | India | $2.39 | -53.61% |
| 75 | Indonesia | $2.34 | -54.62% |
| 76 | South Africa | $2.34 | -54.52% |
| 77 | Romania | $2.28 | -55.70% |
| 78 | Venezuela | $1.76 | -65.77% |
Big Mac Index Formula
The formula to find the Big Mac Index 2023 is pretty straightforward:
The formula looks is:
Big Mac Index=(Price in Currency A / Price in Currency B)×Exchange Rate
Big Mac Index Calculation Example
Let’s take an example using the United States and the United Kingdom.
Putting the numbers into formula:
Big Mac Index=( 5.50/4.00)×0.73=1.0075
The result is 1.0075. Since this number is close to 1, it suggests that the USD and GBP are fairly valued against each other, according to the burger economics of the Big Mac Index 2023.
Conclusion
The Big Mac Index is a way to understand how money works in different countries. By comparing the price of a famous fast-food burger, we can learn about the value of money worldwide. It’s similar to PPP India vs the US because it provides detailed insights into how cash fluctuates worldwide.