Description
Rebase signed localCost by base/local index, convert currency, then apply one plus overhead fraction.
Cross-country monetary comparisons require an explicit currency, price basis, and population scope. Exchange rates, price indexes, and purchasing-power adjustments are different transformations and should not be substituted without stating their meaning.
Rebase signed localCost by base/local index, convert currency, then apply one plus overhead fraction.
When to use this tool
Use Transnational Project Local Cost Price Factor when you need a monetary comparison using caller-supplied conversion or price factors.
How to use the tool and how it works
- Enter localCost, localPriceIndex, basePriceIndex, targetCurrencyPerLocal, overheadFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read baseLocalCost, convertedCost, includingOverhead. Use the output convention below.
Require positive local and base price indexes and targetCurrencyPerLocal and nonnegative overheadFraction. Rebase signed localCost by base/local index, convert currency, then apply one plus overhead fraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| localCost | Local Cost | Required. Finite number. |
| localPriceIndex | Positive supplied source price index. | Required. Finite number; strictly above 0. |
| basePriceIndex | Positive supplied base price index; multiplier is base/source. | Required. Finite number; strictly above 0. |
| targetCurrencyPerLocal | Target-currency units per local-currency unit. | Required. Finite number; strictly above 0. |
| overheadFraction | Overhead Fraction | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| baseLocalCost | Base Local Cost | Required. Finite number. |
| convertedCost | Converted Cost | Required. Finite number. |
| includingOverhead | Including Overhead | Required. Finite number. |
{
"input": {
"localCost": 1200,
"localPriceIndex": 120,
"basePriceIndex": 100,
"targetCurrencyPerLocal": 2,
"overheadFraction": 0.1
},
"output": {
"baseLocalCost": 1000,
"convertedCost": 2000,
"includingOverhead": 2200
}
}Limitations and assumptions
- The result targets the supplied base-price index and quote direction, not necessarily current prices; source comparability, official rates, purchasing power, and actual project costs are not verified.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use the appropriate official dataset and its methodology for the comparison. Align price year, currency, household basis, and purchasing-power convention before aggregating or interpreting values.
References
Similar or alternative tools
- International Price Basis Factor
Divide signed price by source quantity, multiply by target quantity and target-currency-per-source factor.
- International Price Year Base Flag
Rebase nominalPrice by target/source when sourceKnown, otherwise return zero with comparable false.