What was Google's compound annual growth rate (CAGR) since 2005?

Google's CAGR from 2005 to September 2026 was 21.4% per year. For comparison, the S&P 500 has historically averaged around 10% annually. Google significantly outperformed traditional equity markets on an annualized basis.

How does Google compare to the S&P 500 since 2005?

The same $1,000 invested in an S&P 500 index fund in 2005 would be worth approximately $9,559.12 today. Google outperformed the index by $57,770.22 — 7.04x the return of the S&P 500.

How much of the Google gain would you keep after taxes?

Sold today, the $66,329.34 gain would be a long-term capital gain for US federal tax. At the 15% rate most people pay, you'd keep about $57,379.94. At the top rate of 23.8% (20% plus the 3.8% net investment income tax) you'd keep about $51,542.96, and lower incomes pay 0%. State tax is extra, and gains inside a Roth IRA aren't taxed.

What is the inflation-adjusted return on $1,000 in Google since 2005?

Adjusted for cumulative US inflation since 2005, the real purchasing-power value of the Google position is approximately $40,335.65 in 2005 dollars. Even after inflation, this is an extraordinary real return — inflation only marginally reduces gains of this magnitude.

How did Google perform in 2005?

Google rose 115% during 2005, from $5.01 at the start of the year to $10.76 at the start of 2006.

What If You Invested $1,000 in Google in 2005?

Try your own numbers

If I had putintoat the start of…

it would be worth today

$67,329

+$66,329 profit67.3x21.4% a year

The same $1,000 in an S&P 500 index fund: $9,559

Its shares paid about $171.66 in dividends over the last 12 months.

Aftertax on the gain, you’d keep$57,380

US federal long-term rates: 15% for most people, 0% on lower incomes, 20% + 3.8% on high incomes. No state tax included; none inside a Roth IRA.

Compare with

Growth Over Time

Performance Metrics

Total Invested

$1,000.00

Current Value

$67,329.34

Total Profit

$66,329.34

Multiplier

67.3x

CAGR

21.4%

Max Drawdown

-58.6%

Inflation-Adjusted

$40,335.65

Benchmark Comparison

How does $1,000.00 invested in 2005 compare across different asset classes?

Asset	Value Today	Return
Google	$67,329.34	67.3x
S&P 500	$9,559.12	9.56x
Gold	$9,671.49	9.67x
Savings (2% APY)	$1,538.15	1.54x

Dividends

Over the last 12 months, the 200 shares you'd own now paid about $171.66 in dividends (about $14.30 a month). That's 17% of the $1,000 put in.

Price growth alone turned $1,000 into $66,696; reinvested dividends added the other $632.90, 1% of the gain.

Dividends from Yahoo Finance. Shares today assume every dividend was reinvested.

Back in 2005

In September 2005, Google Maps added post-Hurricane Katrina satellite images of New Orleans, letting users switch to a special "Katrina" view of the submerged city. theregister.com
In 2005, a gallon of gas averaged $2.27 and a movie ticket averaged $6.41. eia.gov variety.com
During 2005 itself, Google rose 115%, #3 of the 60 investments we track. The best was Apple (+136%); the worst was Ford (−45%). Full 2005 results →

$1,000 in Google, year by year

Of the 60 investments we track that were available at the start of 2005, Google ranks #8 by growth to today — just behind Amazon and ahead of Salesforce. See the full 2005 ranking →

It has been worth more than the $1,000 put in at every January since, and still is today. Today's $67,329 is more than it was worth at any January since. It rose in 16 of the 21 full years since. It has been ahead of the same $1,000 in the S&P 500 at every January since, and still is. Month by month, the deepest fall ran from Oct 2007 ($3,482) to Nov 2008 ($1,443), a drop of 59%. At its lowest month-end, in Mar 2005, it was worth $888.96.

When	Worth	Change	S&P 500
Start of 2005	$1,000	—	$1,000
Start of 2006	$2,148	+115%	$1,049
Start of 2007	$2,307	+7.4%	$1,215
Start of 2008	$3,381	+47%	$1,282
Start of 2009	$1,585	−53%	$807
Start of 2010	$3,092	+95%	$1,021
Start of 2011	$2,982	−3.6%	$1,175
Start of 2012	$3,283	+10%	$1,200
Start of 2013	$3,569	+8.7%	$1,392
Start of 2014	$5,493	+54%	$1,842
Start of 2015	$5,184	−5.6%	$2,095
Start of 2016	$7,349	+42%	$2,124
Start of 2017	$7,786	+5.9%	$2,378
Start of 2018	$10,549	+35%	$2,897
Start of 2019	$10,359	−1.8%	$2,770
Start of 2020	$13,545	+31%	$3,642
Start of 2021	$17,120	+26%	$4,312
Start of 2022	$28,741	+68%	$5,550
Start of 2023	$17,770	−38%	$4,544
Start of 2024	$27,649	+56%	$5,739
Start of 2025	$37,902	+37%	$7,175
Start of 2026	$62,814	+66%	$8,458
Today	$67,329	+7.2%	$9,559

Values at the start of each year (first trading day for stocks). The S&P 500 column includes reinvested dividends, like the stock values.

Historical Context

At the start of 2005, Google was priced at $5.01 (adjusted for later splits and dividends). $1,000 would have bought about 200 shares. Alphabet is the parent company of Google, YouTube and Google Cloud. This page uses its Class C shares (GOOG).

Measured from one January to the next, Google's best year since then was 2005 (+115%) and its worst was 2008 (−53%). Holding on wasn't easy: between the start of 2008 and the start of 2009, the position fell 53% from its high.

Frequently Asked Questions

A $1,000 investment in Google at the start of 2005 would be worth approximately $67,329.34 today — a 67.3x return ($66,329.34 profit) over 21.7 years.

Methodology & Sources

Price data: Historical prices are the closing price on the first trading day of each year, adjusted for splits and dividends (so returns assume dividends were reinvested), from Yahoo Finance and MacroTrends. Current prices come from Yahoo Finance and refresh hourly; if that source is unavailable, the last saved price is used.

Calculation: Assumes a single purchase at the start of 2005 (or the first trading day, for companies that listed that year), held until today. No transaction fees, taxes, or slippage are included.

Benchmarks: The S&P 500 comparison uses the S&P 500 Total Return index (dividends reinvested, like an index fund) at the start of2005 and today. Gold uses the price per troy ounce. Savings account assumes a 2% APY compounded annually.

Inflation adjustment: Uses U.S. CPI-U annual averages from the Bureau of Labor Statistics. The 2026 CPI value is estimated.

Educational purposes only. Past performance does not guarantee future results. Not financial advice.