BacktestFolio · Glossary
Nominal vs Real Value
In plain language
If your portfolio is worth €200,000 today and was worth €100,000 twenty years ago, you have doubled in nominal terms. But if inflation averaged 3% per year, purchasing power has grown far less. BacktestFolio shows both curves to distinguish 'I have more money' from 'I have more purchasing power'.
Technical definition
The nominal value of a portfolio is expressed in current currency units, without adjustment for inflation. The real (or constant) value is deflated using an inflation index (CPI, HICP) and represents effective purchasing power over time.