S&P 500 5 Year Return (2024)

FAQs

What is the S&P 500 expected return for 5 years? ›

Basic Info. S&P 500 5 Year Return is at 54.51%, compared to 57.45% last month and 71.33% last year. This is higher than the long term average of 44.37%. The S&P 500 5 Year Return is the investment return received for a 5 year period, excluding dividends, when holding the S&P 500 index.

Basic Info. S&P 500 1 Year Return is at 1.15%, compared to 0.91% last month and -1.71% last year. This is lower than the long term average of 6.29%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.

Legendary investor Warren Buffet once said that all it takes to make money as an investor is to 'consistently buy an S&P 500 low-cost index fund. ' And academic research tends to agree that the S&P 500 is a good investment in the long term, despite occasional drawdowns.

The index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s. The index has returned a historic annualized average return of around 11.88% since its 1957 inception through the end of 2021.

How long has it historically taken a stock investment to double? NYU business professor Aswath Damodaran has done the math. According to his math, since 1949 S&P 500 investments have doubled ten times, or an average of about seven years each time.

The same $10,000 invested in the S&P 500 would be worth just $7,520 now.

Basic Info. S&P 500 10 Year Return is at 156.3%, compared to 161.0% last month and 215.4% last year. This is higher than the long term average of 112.6%.

According to many financial investors, 7% is an excellent return rate for most, while 5% is enough to be considered a 'good' return.

Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000.

How much do you need to invest in S&P 500 to become millionaire? ›

If you have 30 years and $100,000, then there's a good chance that the S&P 500 can make you a millionaire retiree. It gets a bit tougher if you have a shorter time frame. You'd have to start with $250,000 to reach $1 million within 20 years. That number swells to $475,000 if you only have a decade until retirement.

The goal of most active investors is to "beat the market," where the "market" is defined as the total return of the S&P 500 Index. After fees and costs, most investors fail to top the index, but some do, including famous investors like Warren Buffett and Carl Icahn.

S&P 500 10 Years Forecast (Until 2032)

In terms of a price target, Bank of America is targeting S&P 500 5,150 to 8,700 with its S&P 500 price forecast for 2030, but it is worth noting that some others are calling for a move as high as 10,000 by the time we get to 2032.

$10,000 invested in the S&P 500 at the begining of 2000 would have grown to $32,527 over 20 years — an average return of 6.07% per year.

Stock market returns since 2015

This is a return on investment of 134.94%, or 10.91% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 83.56% cumulatively, or 7.64% per year.

5% or greater pullbacks occur about every 7 months. 10% or greater pullbacks occur about every 2 years.

Assuming long-term market returns stay more or less the same, the Rule of 72 tells us that you should be able to double your money every 7.2 years. So, after 7.2 years have passed, you'll have $200,000; after 14.4 years, $400,000; after 21.6 years, $800,000; and after 28.8 years, $1.6 million.

As a rate of return, long-term mutual funds can offer rates between 12% and 15% per year. With these mutual funds, it may take between 5 and 6 years to double your money.

If you invested $100 in the S&P 500 at the beginning of 1930, you would have about $566,135.36 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 566,035.36%, or 9.71% per year.

With that, you could expect your $10,000 investment to grow to $34,000 in 20 years.

How long does it take to turn 500k into $1 million? ›

How Long Would It Take To Turn $500k into $1 million. With $2.5 million of properties appreciating 10% a year, your $500,000 investment would turn into $1,000,000 in two years, or three years, if those properties appreciated only 7% per year.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

And if you had put $1,000 into the S&P 500 about a decade ago, the amount would have more than tripled to $3,217 as of April 20, according to CNBC's calculations.

What is the future value of $10,000 on deposit for 5 years at 6% simple interest? Hence the required future value is $13,000.

Stock Market Average Yearly Return for the Last 20 Years

The historical average yearly return of the S&P 500 is 10.05% over the last 20 years, as of the end of April 2023. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.335%.

Average Market Return for the Last 30 Years

Looking at the S&P 500 for the years 1992 to 2021, the average stock market return for the last 30 years is 9.89% (7.31% when adjusted for inflation).

Basic Info. S&P 500 3 Year Return is at 37.30%, compared to 43.16% last month and 50.15% last year.

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

Although hitting a home run with an investment is what dreams are made of, the most realistic path is to put aside big chunks of money every year. The historical average return for the S&P 500 index is 8%. With that return, you'd have to invest $157,830 each year for five years in order to reach $1 million.

You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.

How much is $100 at 10% interest at the end of each year forever worth today? ›

Present value of perpetuity:

So, a $100 at the end of each year forever is worth $1,000 in today's terms.

In order to hit your goal of $1 million in 10 years, SmartAsset's savings calculator estimates that you would need to save around $7,900 per month. This is if you're just putting your money into a high-yield savings account with an average annual percentage yield (APY) of 1.10%.

How much will $100k be worth in 20 years? If you invest $100,000 at an annual interest rate of 6%, at the end of 20 years, your initial investment will amount to a total of $320,714, putting your interest earned over the two decades at $220,714.

An S&P 500 index fund alone can absolutely achieve the growth needed to make you into a millionaire. But you probably don't want that to be your sole investment, particularly when you're close to retirement.

The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2022, had an annual compounded rate of return of 12.6%, including reinvestment of dividends.

Consider investing in rental properties or real estate investment trusts (REIT). The real estate market is a fertile setting for a $100k investment to yield $1 million. And it's possible for this to happen between 5 to 10 years. You can achieve this if you continue to add new properties to your portfolio.

History shows us that investing in an S&P 500 index fund -- a fund that tracks the S&P 500's performance as closely as possible -- is remarkably safe, regardless of timing. The S&P 500 has never produced a loss over a 20-year holding period.

A prime reason is that the skewed pattern of market returns stacks the odds against investors. Typically, a few high-performing stocks pull the average up, while the majority of stocks under-perform. Thus, buying and owning a few individual stocks will usually lead to poor performance.

In this regard, there's no real competition. Over the long run, the S&P 500 has returned about 10% annually to investors on average vs. just 3% or 4% for real estate.

Wilson's base case assumes S&P 500 EPS climb to $250 in 2025, which would be a record. But his target continues to put him at the bearish end of Wall Street. According to JPMorgan, the consensus currently forecasts EPS of $275 in 2025.

Will S&P 500 recover? ›

"In the first half of 2023, the S&P 500 is expected to re-test the lows of 2022, but a pivot from the Federal Reserve could drive an asset recovery later in the year, pushing the S&P 500 to 4,200 by year-end," the investment bank said in a research note.

Summary. The S&P 500 is a great core holding, however, it lacks several dimensions of an optimally diversified portfolio i.e. the sector, geographic, currency and cap size. While 38% of S&P 500 earnings come from outside of the U.S., that is not the same as owning a portfolio that has 38% international stocks.

Stock market returns since 1980

If you invested $100 in the S&P 500 at the beginning of 1980, you would have about $10,941.95 at the end of 2023, assuming you reinvested all dividends. This is a return on investment of 10,841.95%, or 11.47% per year.

The S&P would take another four years to return to the highs it reached in 2000, while the Nasdaq didn't fully recover until March of 2015.

The nominal return on investment of $100 is $24,462.29, or 24,462.29%. This means by 2023 you would have $24,562.29 in your pocket. However, it's important to take into account the effect of inflation when considering an investment and especially a long-term investment.

Basic Info. S&P 500 10 Year Return is at 156.3%, compared to 161.0% last month and 215.4% last year. This is higher than the long term average of 112.6%.

The index acts as a benchmark of the performance of the U.S. stock market overall, dating back to the 1920s. The index has returned a historic annualized average return of around 11.88% since its 1957 inception through the end of 2021.

Basic Info. S&P 500 10 Year Return is at 156.3%, compared to 161.0% last month and 215.4% last year. This is higher than the long term average of 112.6%.

S&P 500 3 Year Return is at 37.30%, compared to 43.16% last month and 50.15% last year. This is higher than the long term average of 22.95%. The S&P 500 3 Year Return is the investment return received for a 3 year period, excluding dividends, when holding the S&P 500 index.

How much would I make if I invested in S&P 500? ›

The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2022, had an annual compounded rate of return of 12.6%, including reinvestment of dividends.

Key Takeaways. If you wanted to double your money every 5 years, you would need to generate an annual rate of return of 14.4%.

Basic Info. S&P 500 2 Year Return is at -0.58%, compared to -0.28% last month and 35.73% last year.

If the S&P 500 does compound 7% annually over the next 20 years, the index will reach roughly 12,560 by 2040.

After dropping more than 18% in 2022, the S&P 500 is now up around 6% year to date (as of May 4), leading some investors to wonder if it's safe to invest now. The short answer is "yes." The longer answer is, "yes, you should be investing regardless of market movements, if you have the means."