What Is the Average Stock Market Return?

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Returns

Returns are the difference between the initial price of an asset and the dollar value that has been generated after ownership has ended.

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Data source: MoneyChimp.
Period	Average Return (Including dividends)	Annualized Return (Adjusted for inflation)	$1 Becomes... (Adjusted for inflation)
10 years (2013-23)	12%	10.83%	$3.10
30 years (1993-2023)	9.03%	7.46%	$9.30
50 years (1973-2023)	10.02%	7.68%	$23.99

It's worth highlighting the variance in annual returns from one year to the next vs. the average. Since 1972, here is a breakdown of the yearly results:

Returns of 20% or more: 19 years.
Returns between 10% and 20%: 13 years.
Returns between 0% and 10%: nine years.
Losses between 0% and 10%: four years.
Losses between 10% and 20%: two years.
Losses of more than 20%: three years.

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About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

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Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.