The S&P 500, formally known as the Standard & Poor’s 500 Composite Stock Price Index, is a stock index that tracks the share prices of 500 of the largest public companies in the United States. It’s one of the main indices used to follow the performance of US stocks.
S&P 500 average return
Between 1 January 1988 and 31 December 2025, the S&P 500 delivered an average annual return of +11.45% in USD, with dividends reinvested. Over the longer period since 1957, when the index was expanded to 500 companies, the annualised return was +10.66%.
In this table, you will find the return of the S&P 500 Total Return Index (dividends reinvested) in USD, for periods ending on 31 December 2025:
| Period | Cumulative return | Annualised return |
|---|---|---|
| 1 year (2025) | +17.88% | +17.88% |
| 3 years | +86.12% | +23.01% |
| 5 years | +96.17% | +14.43% |
| 10 years | +298.33% | +14.82% |
| 20 years | +706.12% | +11.00% |
| 30 years | +1,821.31% | +10.35% |
| Since 1988 | +6,059.89% | +11.45% |
Source: calculated from the annual total returns published by S&P Dow Jones Indices.
In 2026, the S&P 500 returned +14.40% with dividends from 1 January to 21 September.
Returns per calendar year:
| Year | Return |
|---|---|
| 2026 (to 21 September) | +14.40% |
| 2025 | +17.88% |
| 2024 | +25.02% |
| 2023 | +26.29% |
| 2022 | -18.11% |
| 2021 | +28.71% |
| 2020 | +18.40% |
| 2019 | +31.49% |
| 2018 | -4.38% |
| 2017 | +21.83% |
| 2016 | +11.96% |
| 2015 | +1.38% |
| 2014 | +13.69% |
| 2013 | +32.39% |
| 2012 | +16.00% |
| 2011 | +2.11% |
| 2010 | +15.06% |
| 2009 | +26.46% |
| 2008 | -37.00% |
| 2007 | +5.49% |
| 2006 | +15.79% |
| 2005 | +4.91% |
Source: S&P Dow Jones Indices (annual total returns) and Slickcharts (2026 year to date).
The S&P 500 had a positive return in 31 of the 38 calendar years between 1988 and 2025, and in 54 of the 69 years since 1957. However, the negative years can be severe, such as 2008 (-37.00%) and 2022 (-18.11%).
Average return vs annualised return
You will often see two different “average returns” for the S&P 500, and they are not the same:
- Arithmetic average: the simple average of the yearly returns. Between 1988 and 2025, it was +12.90% per year.
- Annualised return (CAGR): the constant yearly return that turns the starting value into the final value. Between 1988 and 2025, it was +11.45% per year.
The annualised return is always lower when returns vary from year to year, because a loss hurts more than an equal gain helps (a -50% year needs a +100% year to recover). It’s the figure that shows what an investor actually earned, so it’s the one we use in the tables above.
What does this mean?
Using the 10-year period as an example: if an investor had put $1,000 in the S&P 500 on 1 January 2016 and reinvested all dividends, the investment would have been worth about $3,983 on 31 December 2025, before fees and taxes.
Please note that you cannot invest directly in an index, so you need a fund that tracks it. In the US, the best-known is the SPY. European retail investors generally can’t buy US-domiciled ETFs like SPY, so they use UCITS ETFs that track the same index. See our guide on how to invest in the S&P 500 from Europe.
If you invest in euros, your return also depends on the EUR/USD exchange rate. For the figures in euros, see our article on the S&P 500 average annual return in EUR.
Calculation methodology
We used the annual total returns of the S&P 500 (price changes plus reinvested dividends) published by S&P Dow Jones Indices up to 2025, and the historical series compiled by Slickcharts for years before 1988 and for 2026 year to date. Cumulative and annualised returns are calculated by compounding the calendar-year returns, so the multi-year periods end on 31 December 2025. Figures do not include fund fees, taxes or currency conversion.
Common questions
What is the average annual return of the S&P 500?
With dividends reinvested, the S&P 500 returned +11.45% per year in USD between 1988 and 2025, and +10.66% per year since 1957. That’s why the long-term figure is often quoted as “around 10% a year”. Past performance does not guarantee future results.
What was the S&P 500 return in 2025?
The S&P 500 returned +17.88% in 2025 with dividends reinvested (+16.39% without dividends), after +25.02% in 2024 and +26.29% in 2023.
What is the S&P 500 return over the last 10 years?
Over the 10 years to 31 December 2025, the S&P 500 returned +298.33% in total, or +14.82% per year, with dividends reinvested.
Bottom line
Over long periods, the S&P 500 has delivered annualised returns of around 10% to 11% in USD, with strong years offsetting sharp falls like 2008 and 2022. Recent years have been well above that long-term average, which is a reminder that returns vary widely from one decade to the next.
Did you find any inaccurate information? Please let us know!
Disclaimer: This article is for information only and is not investment advice. Past performance doesn’t guarantee future results, and when investing your capital is at risk.
Franklin has three years of experience in Wealth Management as a Fund Research Analyst, has passed the CFA level II, and is the host of the "Edge Over Hedge" YouTube channel.
