Fact Check: "In 1987, a $400,000 salary equals about $1.1 million today."
What We Know
The claim states that a salary of $400,000 in 1987 would be equivalent to approximately $1.1 million today. To evaluate this, we can use inflation calculators that provide insights into the changes in purchasing power over time. According to the CPI Inflation Calculator, inflation affects the value of money, and it can be calculated to determine how much a certain amount from the past would be worth today.
Using an inflation calculator, it has been calculated that $400,000 in 1987 is equivalent to about $1,131,919.01 in 2025, indicating that the claim is accurate in terms of the inflation-adjusted value (source).
Analysis
The calculation of inflation is based on the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is a widely accepted measure for inflation and is published by the Bureau of Labor Statistics. The source used for the inflation calculation (source) is credible and utilizes historical CPI data to provide accurate inflation-adjusted values.
However, while the inflation-adjusted figure is approximately $1.1 million, it is essential to consider that inflation does not account for changes in income distribution, cost of living variations, or economic conditions that may affect purchasing power differently across regions and demographics. Therefore, while the numerical value is accurate, the broader implications of what that salary could buy today compared to 1987 may vary significantly.
Conclusion
Needs Research. The claim that a $400,000 salary in 1987 equals about $1.1 million today is supported by inflation data, but further research is needed to understand the context of purchasing power and economic conditions. While the inflation-adjusted figure is correct, the implications of this figure require a more nuanced analysis of economic factors beyond simple inflation calculations.
