Under the hood

Methodology

Transparent, reproducible and statistically honest. Here's exactly how the numbers are made.

Statistics

For every country × category we compute the mean, median, 25th/75th percentiles, standard deviation and coefficient of variation.

Minimum is defined as the mean of the cheapest 1st percentile of observations; maximum as the mean of the most expensive 1st percentile — robust to single freak values.

All statistics are stored canonically in USD and converted to your display currency on the fly using daily exchange rates.

Quality control

Any observation more than 5 standard deviations from the local median is flagged as suspicious — never deleted — and held out of public statistics.

An absolute sanity check catches unrealistic values (e.g. €18/L gasoline, a €0.20 service, a €1,000,000 hotel) using category-specific floors and ceilings, assigning a confidence score.

Suspicious and excluded values are preserved internally so moderators can review them, but they don't distort the public numbers.

Reliability score

Every statistic carries a 0–100% reliability score derived from sample size, data freshness, contributor reputation and dispersion.

A price shown as “€5.43 ± €0.31 · Reliability 94%” is far more useful than a bare average — it tells you how much to trust it.

Indices & the World Cost Index

Each index is a weighted basket of categories. We standardize every category's price across all countries (robust min-max on log prices), take a weighted average, then rescale to 0–100.

100 means the most expensive country in the world for that basket; 0 means the cheapest. The same method powers every map mode and ranking.

Arbitrage & opportunity scores

The Arbitrage Explorer compares each country's price for a good or service against the global median, producing an opportunity score (0–100) where 100 is the best value on Earth.

Curated decks combine baskets — e.g. cheap rentals + food + gyms for digital nomads — to surface the best-value destinations.