S&P 500 Investment
| Asset | Start amount ($) | Annual Investment ($) | Annual Rate (%) | Profit ($) in 10 Years | Total ($) |
|---|---|---|---|---|---|
| 9.86% | 23,000.94 | 43,000.94 |
Annual rate includes reinvested dividends (an estimated +3.5pp added to the price-only CAGR).
All Assets Per Year
| Year | Start Amount | Total Contribution | Profit per Year | Accumulated Profit | Total |
|---|---|---|---|---|---|
| 1 | $10,000 | $1,000 | $1,085 | $1,085 | $12,085 |
| 2 | $12,085 | $2,000 | $1,290 | $2,375 | $14,375 |
| 3 | $14,375 | $3,000 | $1,516 | $3,891 | $16,891 |
| 4 | $16,891 | $4,000 | $1,764 | $5,655 | $19,655 |
| 5 | $19,655 | $5,000 | $2,037 | $7,691 | $22,691 |
| 6 | $22,691 | $6,000 | $2,336 | $10,027 | $26,027 |
| 7 | $26,027 | $7,000 | $2,665 | $12,692 | $29,692 |
| 8 | $29,692 | $8,000 | $3,026 | $15,718 | $33,718 |
| 9 | $33,718 | $9,000 | $3,423 | $19,142 | $38,142 |
| 10 | $38,142 | $10,000 | $3,859 | $23,001 | $43,001 |
How the S&P 500 Rate Is Calculated
The annual rate above isn't a round-number assumption — it's the actual compound annual growth rate (CAGR) of the S&P 500 price index over its full available history, plus an estimated adjustment for reinvested dividends (hover the info icon next to "Annual Rate" for the exact figures). The underlying price index excludes dividends, and reinvesting them historically adds roughly 3–4 percentage points per year, which is why the total return shown is higher than the price-only return you'd see quoted for the index itself.
Want to see performance for a specific window instead of the full history — say, from a market peak or through a particular crash? The S&P 500 historical data page lets you pick any two dates back to 1927 and get exact total return, CAGR, and drawdown figures.
What This Calculator Doesn't Include
This projection applies one constant rate every year, which smooths over real market behavior — the S&P 500 has had double-digit down years (2008, 2022) and 30%+ up years within the same decade. It also doesn't account for fund expense ratios, taxes on dividends or capital gains, or the exact dividend reinvestment timing an index fund would use.
Frequently Asked Questions
What is the average annual return of the S&P 500?
Historically, the S&P 500's total return (including reinvested dividends) has averaged close to 10% annually over long periods, though any individual year can swing far above or below that average. The rate used in this calculator is derived from actual historical price data rather than the commonly quoted round number.
Does the return include dividends?
Yes, via an estimated adjustment. The raw ^GSPC price index used for the base calculation excludes dividends entirely, so we add an estimated +3.5 percentage points per year, the widely-cited historical gap between the S&P 500's price-only and total-return performance.
How does the S&P 500 compare to gold or Bitcoin?
The S&P 500 has historically delivered more consistent long-term growth than gold, with far less volatility than Bitcoin. Use the portfolio comparison tool to model different asset mixes side by side.
Is CAGR the same as average annual return?
No. CAGR is the smoothed, compounded growth rate between two points in time, while a simple average of yearly returns can be skewed higher by volatility. CAGR is the more accurate figure for estimating actual long-term growth.