Understanding Your Stock Investment Returns
Calculating potential returns on your stock investment is important for long-term financial planning. By adjusting the initial investment and expected annual return rate, you can get an idea of how much profit you will earn over different periods. This tool uses compound interest to determine how your investment will grow over time.
Average Returns of Top Performing Stocks
Historical data indicates that top-performing stocks, such as those in the S&P 500, have had average returns of approximately 10% annually over the last 10 years. Specific examples of top stocks include:
- S&P 500: 1-year average return: ~10%, 5-year average return: ~13%, 10-year average return: ~10%
- Apple Inc. (AAPL): 1-year average return: ~32%, 5-year average return: ~25%
- Amazon.com Inc. (AMZN): 1-year average return: ~15%, 5-year average return: ~20%