S&P 500 Historical Returns: Every Year Since 1926
The S&P 500 is the most widely followed stock market index in the world — and it has nearly 100 years of data to analyse. The headline: ~10.2% average annual return since 1926. But that average hides wild swings, lost decades, and explosive recoveries. Here’s the complete picture — decade by decade, year by year — and what it actually means for your portfolio.
The headline number
Since 1926, the S&P 500 has delivered an average annual return of approximately 10.2% (nominal, including dividends). Adjusted for inflation, the real return is closer to 7.0%. That’s nearly a century of data — covering the Great Depression, World War II, stagflation, the dot-com bubble, the 2008 financial crisis, COVID, and everything in between.
Use our stock return calculator to check exact S&P 500 returns for any specific date range.
Returns by decade
The S&P 500’s 10% average disguises enormous variation decade by decade. Some decades delivered explosive growth; others gave investors almost nothing:
| Decade | Total return | Annualised | Notable events |
|---|---|---|---|
| 1930s | -42% | -5.3% | Great Depression |
| 1940s | +67% | +5.3% | WWII, post-war boom |
| 1950s | +257% | +13.6% | Post-war prosperity |
| 1960s | +54% | +4.4% | Vietnam, social upheaval |
| 1970s | +17% | +1.6% | Oil crisis, stagflation |
| 1980s | +227% | +12.6% | Reagan bull market |
| 1990s | +316% | +15.3% | Tech boom, internet |
| 2000s | -24% | -2.7% | Dot-com bust + 2008 crisis |
| 2010s | +190% | +11.2% | Longest bull market ever |
| 2020s* | +63% | +10.3% | COVID crash + AI boom |
*2020s data through 2025. Past decade returns include dividends.
The 1990s were the best decade (+15.3%/yr), while the 2000s were the worst in modern history (-2.7%/yr). An investor who started in 2000 and checked 10 years later would have been deeply discouraged — but those who kept investing through that period saw enormous gains in the 2010s.
Best and worst individual years
Best years
| Year | Return | Context |
|---|---|---|
| 1933 | +46.6% | Recovery from Depression bottom |
| 1954 | +45.0% | Post-recession rebound |
| 1958 | +38.1% | Eisenhower era growth |
| 1995 | +34.1% | Mid-90s tech ramp |
| 2013 | +29.6% | Post-crisis recovery |
Worst years
| Year | Return | Context |
|---|---|---|
| 1931 | -43.8% | Great Depression |
| 2008 | -36.6% | Financial crisis |
| 1937 | -35.3% | Recession within Depression |
| 1974 | -25.9% | Oil crisis, stagflation |
| 2002 | -21.6% | Dot-com bust year 3 |
Notice a pattern: the best years almost always follow the worst years. The market’s biggest gains come during recovery periods — which is exactly why selling during a crash is so costly. If you miss the 10 best days over a 20-year period, your returns drop by roughly half. For a deeper look at crash recovery, see our S&P 500 worst-case scenarios article.
What $10,000 became over different periods
Here’s how a single $10,000 lump-sum investment in the S&P 500 would have grown (with dividends reinvested, no additional contributions):
These numbers don’t include additional monthly contributions. With $500/month added consistently, the 30-year figure rises to well over $1 million. Use our compound interest calculator to model your own scenario.
Rolling returns: why time horizon matters
The S&P 500’s return in any single year is highly unpredictable. But as you extend the holding period, the range of outcomes narrows dramatically:
| Holding period | Worst return | Best return | Average | % positive |
|---|---|---|---|---|
| 1 year | -43.8% | +52.6% | +10.2% | 74% |
| 5 years | -12.5%/yr | +28.6%/yr | +9.8% | 88% |
| 10 years | -3.4%/yr | +20.1%/yr | +10.0% | 95% |
| 20 years | +6.4%/yr | +17.9%/yr | +10.2% | 100% |
Over every 20-year period in the S&P 500’s history, the index has produced a positive return. The worst 20-year stretch still delivered +6.4% per year. Time is the most reliable risk-reduction tool available to investors.
Dividends: the hidden return driver
Roughly 40% of the S&P 500’s total historical return has come from reinvested dividends, not price appreciation. The current dividend yield is about 1.3%, down from historical averages of 3–4% because stock prices have risen faster than dividend payments. Still, reinvesting dividends compounds returns significantly over time.
What this means for your portfolio
- The 10% average is real, but volatile. Any given year can be +30% or -30%. The average only materialises over long periods.
- Time is your biggest advantage. At 20+ years, the S&P 500 has never lost money. The longer your holding period, the more certain positive returns become.
- Don’t try to predict the next decade. The 1990s and 2000s were back-to-back, yet their returns were opposite extremes. Stay invested through all of them.
- Reinvest dividends. They account for roughly 40% of long-term returns. Turn on DRIP (dividend reinvestment) in your brokerage.
- Think in real terms. After inflation, the S&P 500 returns ~7%. Use this number for retirement planning. Our inflation article explains why.
Check exact returns for any period
Use our stock return calculator to see the precise S&P 500 return between any two dates — with dividends reinvested and inflation adjustment.
Open stock return calculator →Historical S&P 500 data sourced from public market records. All returns are total returns including reinvested dividends unless otherwise stated. Past performance does not guarantee future results. This article is for educational purposes only and does not constitute financial advice.