PPP Pricing Calculator

Purchasing power parity (PPP) compares what the same basket of goods and services costs in different countries. A $49 monthly plan is a small expense in the US or Switzerland but a large one in India or Nigeria, where local prices are a fraction of US prices.

PPP pricing means charging each country a price that feels the same relative to local costs. SaaS founders usually do it with a discount shown to visitors from lower-cost countries, which wins customers who would never pay the full US price while leaving that price unchanged for everyone else.

For each country we use its price level: local prices as a share of US prices, from the World Bank's PPP data. The PPP price is your price multiplied by that share. In exact mode you can cap the deepest discount and choose never to charge more than your base price in countries that are pricier than the US. In tier mode, countries are grouped into four bands by price level, each with one discount and coupon code.

Here is a $49/month plan in exact mode, capped at 70% off and rounded to whole dollars:

1. Pick tiers, not 190 prices. Three or four bands cover most of the benefit. Create one coupon or promotion code per band in your billing tool.
2. Detect the visitor's country. Most hosts and CDNs pass it as a request header, or use an IP lookup. Show a short banner: “Prices adjusted for your country: use code PPP40 for 40% off.”
3. Check it at checkout. Accept the code only when the card or billing country matches the discounted country. That stops most VPN abuse.
4. Measure. Watch conversion and revenue per country for a month or two, then move countries between tiers. Copy the JSON from the calculator to keep the country-to-discount map in your code.

Getting the pricing page itself right matters as much as the numbers. See our pricing page examples for layouts that convert.

It pays off when you sell globally online and a meaningful share of visitors come from lower-cost countries: developer tools, design tools, courses, templates and indie SaaS. It matters less when your buyers are companies paying with corporate cards, or when you only sell in one market.

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