Here's How Much a $50,000 Investment in the S&P 500 Could Grow in 25 Years

Here's How Much a $50,000 Investment in the S&P 500 Could Grow in 25 Years

Dana George, The Motley Fool

Fri, August 28, 2026 at 10:57 PM GMT+3 4 min read

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 »

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.

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.

Don't miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.

On rare occasions, our expert team of analysts issues a "Double Down" stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $592,039!*

• Apple: if you invested $1,000 when we doubled down in 2008, you'd have $60,008!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $430,571!*

Right now, we're issuing "Double Down" alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of August 3, 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.

Here's How Much a $50,000 Investment in the S&P 500 Could Grow in 25 Years was originally published by The Motley Fool