S&P 500 Historical Returns
Annual S&P 500 returns from 1928 to present — CAGR, volatility, and best/worst year.
Source: Damodaran Online (NYU Stern) · 1928–2024 · last verified 2026-08-29
How this is calculated
CAGR (compound annual growth rate) is the single steady rate that would take the S&P 500 from its starting value to its ending value over the selected period, accounting for compounding. Volatility is the standard deviation of annual returns — a measure of how much returns varied year to year around the average.
These historical return figures are used as inputs in the Monte Carlo Retirement Simulator (stocks: 7% real / 15% σ). For inflation-adjusted returns in your own portfolio, see the Inflation Adjusted Return Calculator. For the Safe Withdrawal Rate using these return assumptions, see the Safe Withdrawal Rate Calculator.
Frequently asked questions
- What return figure does this use?
- By default, total return — the S&P 500's price change plus reinvested dividends, which is the most complete measure of what an investor actually earned. You can switch to price-only or inflation-adjusted (real) return.
- What is CAGR?
- Compound Annual Growth Rate — the single steady annual growth rate that would take the starting value to the ending value over the period, accounting for compounding. It smooths out year-to-year volatility into one comparable figure.
- What is the difference between total return and price return?
- Price return only reflects the change in the index level itself. Total return adds back dividends paid along the way (assumed reinvested), which historically account for a meaningful share of the S&P 500's long-run return.
- Why does real return matter?
- Real return strips out inflation, showing the actual growth in purchasing power rather than nominal dollars — the figure that matters for long-term financial planning.
- Can I use this in my own app?
- Yes — every calculator on Stupidly Clever has a matching REST API and MCP tool that runs the same underlying logic.