The Average Stock Market Return: About 10%

What Is the Average Stock Market Return?

The average stock market return is about 10% per year for nearly the last century, as measured by the S&P 500 index. In some years, the market returns more than that, and in other years it returns less.

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What is the average stock market return?

The average stock market return is about 10% per year, as measured by the S&P 500 index. However, that average rate is reduced by inflation — investors can expect to lose 2% to 3% of their purchasing power every year. Investing in the stock market is most effective when you utilize long-term investments — money you don't need for at least five years. For shorter time frames, you'll want to stick to lower-risk options (such as a high-yield online savings account) and you'd expect to earn a lower return in exchange for that safety. » Ready to get started? Here's how to invest in stocks » Ready to get started?

The average stock market return isn't always average

While 10% might be the average, the returns in any given year are far from average. In fact, between 1926 and 2025, returns fell within the “average” band of 8% to 12% only eight times. The rest of the time, they were much lower or, usually, much higher. But even when the market is volatile, returns tend to be positive in a given year. Of course, it doesn’t always rise — but in the years the stock market has been around, it has produced positive returns in 70% of them.

Historical S&P 500 returns

Below is a table showing the S&P 500's price returns over different timeframes, as of the end of 2025. Period (start-of-year to end-of-2025) Period (start-of-year to end-of-2025) Average annual S&P 500 return Average annual S&P 500 return 5 years 14.28% 10 years 13.92% 15 years 12.86% 20 years 10.39% 30 years 9.90% Source: macrotrends.net Source: macrotrends.net The table shows that while the market has a long-term average annual return of 10%, year-to-year returns can vary significantly. The five-year return factors in the post-pandemic surge and the 2023 recovery. The 20-year return includes the Great Recession, and the 30-year return includes the dot-com crash of the early 2000s. » Intrigued? Learn how to invest in the S&P 500 » Intrigued? Brokerage firms

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on Charles Schwab's website

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on E*TRADE's website

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on Vanguard's website

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on Fidelity's website

What to expect from the average stock market return

There are no guarantees in the market, but this 10% average has held remarkably steady for a long time. So what kind of return can investors reasonably expect today from the stock market? The answer to that depends largely on what has happened in the recent past. But here’s a simple rule of thumb: The higher the recent returns, the lower the future returns, and vice versa. Generally speaking, when estimating the return on your stock-market investment over time, we suggest using an average annual return of 6% and recognizing that you'll experience both down years and up years. You can use NerdWallet's investment calculator to see what 6% growth looks like based on how much you're planning to invest. Here are three key takeaways if you’re looking to make money in the stock market. 1. Temper your enthusiasm during good times. Congratulations, you’re making money. However, when stocks are running high, remember that the future is likely to be less good than the past. It seems investors have to relearn this lesson during every bull market cycle. 1. Temper your enthusiasm during good times. 2. Become more optimistic when things look bad. A down market should cause you to celebrate: You can buy stocks when they're essentially on sale and anticipate higher future returns. 2. Become more optimistic when things look bad. 3. You get the average return only if you buy and hold. If you trade in and out of the market frequently, you can expect to earn less, sometimes much less. Commissions and taxes eat up your returns, while poorly timed trades erode your bankroll. Study after study shows that it’s almost impossible for even investing professionals to beat the market. It's good to rebalance your portfolio occasionally. That means selling off a little bit of the investments that have gained more than expected, and buying a little bit of the ones that have underperformed in order to bring the portfolio back to its target composition. But other than a little bit of rebalancing, try to touch your investments as little as possible. 3. You get the average return only if you buy and hold. Over time, even a few percentage points can make the difference between retiring with a tidy nest egg and continuing to drudge away in your golden years. » Start small: How to invest $500 » Start small:

Ready to get started?

If the market’s long-term return sounds attractive to you, it’s easy to get started. You’ll first need to open a brokerage account, which allows you to buy and sell stock market investments. » Need a little help? Check out our list of the best online brokers » Need a little help? Explore more on About the author O'Shea Arielle O’Shea leads the investing, advisory and taxes content teams at NerdWallet. She has covered personal finance and investing for 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Best Brokerage Accounts for Online Investing and Stock Trading in 2026 By Chris Davis Best Robo-Advisors for Automated Investing: Top Picks for 2026 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for July 2026 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 By Chris Davis, Alieza Durana