What was Microsoft's compound annual growth rate (CAGR) since 2017?

Microsoft's CAGR from 2017 to September 2026 was 25.4% per year. For comparison, the S&P 500 has historically averaged around 10% annually. Microsoft significantly outperformed traditional equity markets on an annualized basis.

How does Microsoft compare to the S&P 500 since 2017?

The same $1,000 invested in an S&P 500 index fund in 2017 would be worth approximately $4,020.45 today. Microsoft outperformed the index by $5,030.95 — 2.25x the return of the S&P 500.

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

Sold today, the $8,051.40 gain would be a long-term capital gain for US federal tax. At the 15% rate most people pay, you'd keep about $7,843.69. At the top rate of 23.8% (20% plus the 3.8% net investment income tax) you'd keep about $7,135.16, 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 Microsoft since 2017?

Adjusted for cumulative US inflation since 2017, the real purchasing-power value of the Microsoft position is approximately $6,805.21 in 2017 dollars. Even after inflation, this is an extraordinary real return — inflation only marginally reduces gains of this magnitude.

How did Microsoft perform in 2017?

Microsoft rose 40% during 2017, from $56.23 at the start of the year to $78.96 at the start of 2018.

What If You Invested $1,000 in Microsoft in 2017?

Try your own numbers

If I had putintoat the start of…

it would be worth today

$9,051

+$8,051 profit9.05x25.4% a year

The same $1,000 in an S&P 500 index fund: $4,020

Its shares paid about $64.73 in dividends over the last 12 months.

Aftertax on the gain, you’d keep$7,844

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

$9,051.40

Total Profit

$8,051.40

Multiplier

9.05x

CAGR

25.4%

Max Drawdown

-30.5%

Inflation-Adjusted

$6,805.21

Benchmark Comparison

How does $1,000.00 invested in 2017 compare across different asset classes?

Asset	Value Today	Return
Microsoft	$9,051.40	9.05x
S&P 500	$4,020.45	4.02x
Gold	$3,662.03	3.66x
Savings (2% APY)	$1,212.83	1.21x

Dividends

Over the last 12 months, the 17.78 shares you'd own now paid about $64.73 in dividends (about $5.39 a month). That's 6.5% of the $1,000 put in.

Price growth alone turned $1,000 into $8,092; reinvested dividends added the other $959.45, 12% of the gain.

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

Back in 2017

In November 2017, Microsoft launched the Xbox One X, a 4K-capable console, in 35 markets, the biggest global launch in Xbox history. news.microsoft.com
In 2017, a gallon of gas averaged $2.42, a movie ticket averaged $8.97 and the new iPhone X started at $999. eia.gov apple.com deadline.com
During 2017 itself, Microsoft rose 40%, #34 of the 87 investments we track. The best was XRP (+36,408%); the worst was AMC Entertainment (−54%). Full 2017 results →

$1,000 in Microsoft, year by year

Of the 87 investments we track that were available at the start of 2017, Microsoft ranks #18 by growth to today — just behind Caterpillar and ahead of Vanguard Tech ETF (VGT). See the full 2017 ranking →

Microsoft started 2017 at its highest start-of-year price up to then, after rising 17% in 2016. It has been worth more than the $1,000 put in at every January since, and still is today. Today's $9,051 is more than it was worth at any January since. It rose in 8 of the 9 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 Dec 2021 ($5,770) to Oct 2022 ($4,009), a drop of 31%.

When	Worth	Change	S&P 500
Start of 2017	$1,000	—	$1,000
Start of 2018	$1,404	+40%	$1,218
Start of 2019	$1,681	+20%	$1,165
Start of 2020	$2,712	+61%	$1,532
Start of 2021	$3,715	+37%	$1,814
Start of 2022	$5,760	+55%	$2,334
Start of 2023	$4,161	−28%	$1,911
Start of 2024	$6,499	+56%	$2,414
Start of 2025	$7,390	+14%	$3,018
Start of 2026	$8,358	+13%	$3,557
Today	$9,051	+8.3%	$4,020

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 2017, Microsoft was priced at $56.23 (adjusted for later splits and dividends). $1,000 would have bought about 17.78 shares. Microsoft makes Windows and Office and runs Azure, one of the largest cloud platforms.

Measured from one January to the next, Microsoft's best year since then was 2019 (+61%) and its worst was 2022 (−28%). Holding on wasn't easy: between the start of 2022 and the start of 2023, the position fell 28% from its high.

Frequently Asked Questions

A $1,000 investment in Microsoft at the start of 2017 would be worth approximately $9,051.40 today — a 9.05x return ($8,051.40 profit) over 9.7 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 2017 (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 of2017 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.