Here's How Much a $50,000 Investment in the S&P 500 Could Grow in 25 Years
Key Points
Historically, the S&P 500 averages about a 10% annual return, or roughly 7% factoring in inflation.
Reinvested dividends contribute substantially to growth.
Market fluctuations are to be expected.
- These 10 stocks could mint the next wave of millionaires ›
When you're young, 25 years seems like it's forever. With age, you realize that 25 years feel as though they've passed in the blink of an eye. What might have felt like locking up your money for eternity turns out to be one of the smartest ways to build wealth.
While putting it all in an index tracker such as the Vanguard S&P 500 ETF (NYSEMKT: VOO) is not your only option for investing $50,000, here's a sample of how much it could be worth 25 years down the road if you decided to strictly stick with the S&P 500.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
A $50,000 investment
If you're willing to let your initial investment, along with any dividends, ride for 25 years, here's how much you could end up with.
|
Average rate of return |
After 25 years |
|---|---|
| 7% | $271,372 |
| 7.5% | $304,917 |
| 8% | $342,424 |
| 8.5% | $384,338 |
| 9% | $431,154 |
| 9.5% | $483,418 |
| 10% | $541,735 |
| 10.5% | $606,774 |
| 11% | $679,273 |
Data Source: Author's calculations
How the S&P 500 has performed in the past
The annualized yearly return of the S&P 500 with dividends reinvested over the last 100 years has been 10.6%. Adjusted for inflation, that's 7.4%. If you narrow that timeline to 50 years, the annual return has been 11.8%, or 7.9% adjusted for inflation.
Keep in mind, in the past 100 years, the economy has experienced the shock of the Great Depression, World War II, the OPEC oil embargo, 1987's Black Monday, the 2000 dot-com bubble burst, the global financial crisis of 2008, and the COVID-19 pandemic shock. Since 1928, there's never been a 20-year period when the S&P 500 failed to generate a positive return.
Dramatic swings occur
As dependably as the market has performed over the past century, there have been years when the S&P has struggled. For example, in the heart of the Great Depression, the S&P 500 ended 1931 at -43.3%, and at the beginning of American involvement in World War II, it ended the year at -11.6%. More recently, the 2008 global financial crisis led to the S&P ending the year at -37%, and as a result of the financial impact of the pandemic, 2022 ended at -18%.
Still, because the market has rebounded from those losses, the S&P 500 has thrived over the past century.
You can't expect the path always to be smooth. There will almost certainly be market drops, bear markets, and plenty of frightening headlines along the way. And yet, history shows that remaining invested through the ups and downs can be key to turning modest sums into large long-term wealth.
If you don't have a lump sum of $50,000 to invest, that's OK. Time and compounding work the same way, no matter how much you invest at a time. Adding small amounts at a time to an investment or retirement account has the same potential to build wealth.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 986%* — a market-crushing outperformance compared to 214% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of August 28, 2026.
Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Recommended Articles
