Fact Check: Adjusted for inflation, $400K in 1987 equals $1.1 million today.

Fact Check: "Adjusted for inflation, $400K in 1987 equals $1.1 million today."

What We Know

The claim that $400,000 in 1987 is equivalent to approximately $1.1 million today can be substantiated by various inflation calculators that utilize the Consumer Price Index (CPI). According to the CPI Inflation Calculator provided by the U.S. Bureau of Labor Statistics, the cumulative inflation rate from 1987 to 2025 is significant. Specifically, $400,000 in 1987 is estimated to be worth about $1,142,747 today, reflecting a cumulative price increase of approximately 182.98% over the years (source-1, source-4).

Additionally, another inflation calculator confirms that $400,000 in 1987 is equivalent to about $1,131,919 today, further supporting the claim (source-2). This consistent result across multiple reputable sources indicates a strong consensus on the inflation-adjusted value.

Analysis

The evidence supporting the claim is robust, as it is derived from reliable sources that calculate inflation based on the CPI, which is a widely accepted measure of inflation in the United States. The U.S. Bureau of Labor Statistics is a government agency known for its accuracy and reliability in economic data, making its inflation calculator a credible source (source-1).

Moreover, the calculations from other sources, such as amortization.org and in2013dollars.com, corroborate the findings from the Bureau of Labor Statistics. The slight variations in the exact figures can be attributed to different methodologies or rounding, but they all fall within a similar range, affirming that $400,000 in 1987 is indeed equivalent to around $1.1 million today.

In contrast, the other sources listed, such as NerdWallet and Saving.org, also provide inflation calculators but do not present specific values for 1987 to 2025. Therefore, while they are useful for general inflation calculations, they do not add conflicting evidence to the claim.

Conclusion

Verdict: True
The claim that $400,000 in 1987 is equivalent to approximately $1.1 million today is accurate based on multiple reliable sources that calculate inflation using the CPI. The consistent results from these sources confirm that the inflation-adjusted value of $400,000 from 1987 aligns closely with the claim.