If you invested $10,000 in the S&P 500 in 1987

How this was computed

We take the S&P 500 total return series (price change plus dividends reinvested at year-end) from start of 1987 through end of 2024 — a 38-year window — and apply the actual year-by-year return to a starting balance of $10,000. The nominal figure of $532,954 reflects the market value in 2024 dollars. The real figure of $186,196 strips out cumulative CPI-U inflation over the same window, expressing the end value in terms of 1987 purchasing power.

Total multiplier: 53.30× nominal (real: 18.62×). Cumulative CPI-U inflation over the window: 2.86× — meaning one 1987 dollar buys 0.35 2024 dollars of goods.

What this scenario captures

Every rolling multi-decade window contains its own crisis and recovery. The 38-year window starting 1987 includes the market events of that era — bull runs, drawdowns, monetary regime changes, and inflation cycles — all baked into the compounded number. Long-run S&P 500 real return since 1928 has averaged roughly 6.9%; the 8.00% realized in this specific window exceeded that average.

What the calculation excludes

• ETF or mutual fund expense ratios (VOO 0.03%, SPY 0.09%, IVV 0.03%)
• Taxes on dividends (typically 15-20% qualified rate) — inside a Roth IRA or taxable-account brokerage account with reinvested dividends the drag matters
• Bid/ask spread and transaction costs
• Behavioral realities — real investors rarely hold through the worst drawdowns without selling

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This page precomputes the S&P 500 outcome for $10,000 starting in 1987. For a custom scenario, use our interactive tool:

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