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.

big mac index 2023

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.

#CountryBig Mac Price
1Switzerland$6.71
2Norway$6.26
3Uruguay$6.08
4Sweden$5.59
5Canada$5.25
6United States of America$5.15
7Lebanon$5.08
8Israel$4.95
9United Arab Emirates$4.90
10Andorra$4.77
11Austria$4.77
12Belgium$4.77
13Cyprus$4.77
14Estonia$4.77
15Finland$4.77
16France$4.77
17Germany$4.77
18Greece$4.77
19Ireland$4.77
20Italy$4.77
21Latvia$4.77
22Lithuania$4.77
23Luxembourg$4.77
24Malta$4.77
25Monaco$4.77
26Netherlands$4.77
27Portugal$4.77
28Saint Pierre and Miquelon$4.77
29Saint-Barthélemy$4.77
30San Marino$4.77
31Slovakia$4.77
32Slovenia$4.77
33Spain$4.77
34Vatican City$4.77
35Australia$4.63
36Argentina$4.57
37Saudi Arabia$4.53
38United Kingdom$4.44
39New Zealand$4.43
40Brazil$4.25
41Bahrain$4.24
42Singapore$4.24
43Kuwait$4.23
44Czech Republic$3.97
45Costa Rica$3.91
46Nicaragua$3.87
47Sri Lanka$3.72
48Oman$3.69
49Croatia$3.68
50Chile$3.66
51Honduras$3.62
52Poland$3.59
53Peru$3.57
54Qatar$3.57
55People’s Republic of China$3.56
56South Korea$3.50
57Thailand$3.50
58Colombia$3.48
59Mexico$3.43
60Guatemala$3.36
61Jordan$3.24
62Pakistan$3.16
63Moldova$3.11
64Vietnam$2.95
65Japan$2.83
66Azerbaijan$2.77
67Philippines$2.75
68Hong Kong$2.68
69Turkey$2.68
70Hungary$2.65
71Taiwan$2.51
72Malaysia$2.45
73Egypt$2.43
74India$2.39
75Indonesia$2.34
76South Africa$2.34
77Romania$2.28
78Venezuela$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.

#CountryBig Mac PriceBig Mac Index
1Switzerland$6.7130.33%
2Norway$6.2621.63%
3Uruguay$6.0818.15%
4Sweden$5.598.53%
5Canada$5.251.97%
6United States of America$5.150%
7Lebanon$5.08-1.40%
8Israel$4.95-3.97%
9United Arab Emirates$4.90-4.84%
10Andorra$4.77-7.47%
11Austria$4.77-7.47%
12Belgium$4.77-7.47%
13Cyprus$4.77-7.47%
14Estonia$4.77-7.47%
15Finland$4.77-7.47%
16France$4.77-7.47%
17Germany$4.77-7.47%
18Greece$4.77-7.47%
19Ireland$4.77-7.47%
20Italy$4.77-7.47%
21Latvia$4.77-7.47%
22Lithuania$4.77-7.47%
23Luxembourg$4.77-7.47%
24Malta$4.77-7,47%
25Monaco$4.77-7.47%
26Netherlands$4.77-7.47%
27Portugal$4.77-7.47%
28Saint Pierre and Miquelon$4.77-7.47%
29Saint-Barthélemy$4.77-7.47%
30San Marino$4.77-7.47%
31Slovakia$4.77-7.47%
32Slovenia$4.77-7.47%
33Spain$4.77-7.47%
34Vatican City$4.77-7.47%
35Australia$4.6310.18%
36Argentina$4.57-11.27%
37Saudi Arabia$4.53-12.09%
38United Kingdom$4.44-13.79%
39New Zealand$4.43-14.04%
40Brazil$4.25-17.53%
41Bahrain$4.24-17.59%
42Singapore$4.24-17.66%
43Kuwait$4.23-17.88%
44Czech Republic$3.97-22.88%
45Costa Rica$3.91-24.12%
46Nicaragua$3.87-24.80%
47Sri Lanka$3.72-27.72%
48Oman$3.69-28.38%
49Croatia$3.68-28.46%
50Chile$3.66-28.89%
51Honduras$3.62-29.79%
52Poland$3.59-30.32%
53Peru$3.57-30.67%
54Qatar$3.57-30.69%
55People’s Republic of China$3.56-30.93%
56South Korea$3.50-32%
57Thailand$3.50-32.12%
58Colombia$3.48-32.41%
59Mexico$3.43-33.41%
60Guatemala$3.36-34.67%
61Jordan$3.24-37.11%
62Pakistan$3.16-38.71%
63Moldova$3.11-39.63%
64Vietnam$2.95-42.79%
65Japan$2.83-45.07%
66Azerbaijan$2.77-46.26%
67Philippines$2.75-46.51%
68Hong Kong$2.68-48.06%
69Turkey$2.68-48.04%
70Hungary$2.65-48.59%
71Taiwan$2.51-51.31%
72Malaysia$2.45-52.44%
73Egypt$2.43-52.85%
74India$2.39-53.61%
75Indonesia$2.34-54.62%
76South Africa$2.34-54.52%
77Romania$2.28-55.70%
78Venezuela$1.76-65.77%

Big Mac Index Formula

The formula to find the Big Mac Index 2023 is pretty straightforward:

  • Find the Price in Currency A: Take the price of a Big Mac in one country.
  • Find the Price in Currency B: Take the price of a Big Mac in another country.
  • Exchange Rate: Find the current exchange rate between the two currencies.
  • Calculate the Index: Divide the price of a Big Mac in Currency A by the price of a Big Mac in Currency B. Then, multiply by the exchange rate.

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.

  • Price in USD (USA): $5.50
  • Price in GBP (UK): £4.00
  • Exchange Rate (USD to GBP): 1 USD = 0.73 GBP

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.

Frequently Asked Questions

The Big Mac Index compares the cost of a Big Mac burger in different countries to show how money is valued worldwide.

No, it’s not perfect, as it doesn’t consider taxes or differences in living costs. But it’s a simple way to understand how currencies compare.

Yes! While it’s simple, it can give you a basic understanding of how money is valued in different parts of the world and how currencies are compare

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