USD to GBP purchasing power parity
Dollar-to-pound purchasing power parity on OECD data, worked in both directions, with the formula and how it compares to the market rate.
The rate, both directions
- 1 USD at purchasing power parity
- £0.70 GBP
- 1 GBP at purchasing power parity
- $1.4225 USD
- $1,000 in the United States buys, in United Kingdom,
- £703
- £1,000 in United Kingdom buys, in the United States,
- $1,422.48
OECD household final consumption expenditure PPPs, 2024.
Dollar and pound sit closer together at PPP than the market rate usually suggests, which is why a dollar salary converted to sterling at the market rate tends to overstate how much better off it leaves you in the UK.
The comparison is most often made for salaries and relocation, where the honest question is not how many pounds the dollars convert into but what each buys in its own country.
How the conversion works
amount in B = (amount in A ÷ PPP rate of A) × PPP rate of B
A PPP rate is the units of local currency that buy what one US dollar buys in the United States, so the US rate is 1 by construction and any pair runs through it. Use the full calculator to convert an arbitrary amount across all 43 countries at once.
Frequently asked questions
Is the pound overvalued or undervalued against the dollar? ▾
PPP gives you the benchmark, not the verdict: if the market rate sits above the PPP rate the pound is cheap relative to relative prices, and below it the pound is expensive. Compare the PPP rate on this page with today's market rate to see which way the gap currently runs.
Does this account for London being more expensive than the rest of the UK? ▾
No. OECD PPP rates are national averages across the whole consumption basket, so a London-specific comparison would need a city-level cost-of-living adjustment on top of the national PPP figure.
Other pairs
- USD to EUR — why there is no single euro PPP rate, and what each euro country's rate is
- USD to JPY — the gap between Japan's PPP rate and the market rate, and what it means
- USD to CHF — why Swiss salaries look larger at the market rate than at PPP
- USD to CAD — the US–Canada comparison at purchasing power, not the market rate
- USD to NOK — Norwegian prices and pay compared at purchasing power parity
- Average Salary Explorer — OECD average wages in nominal, real and PPP-converted terms.