S&P 500 Drawdown History

Written by:
PK

On this page is an S&P 500 Drawdown History Calculator. It shows how far the S&P 500 has fallen from its prior peak, how long each decline took, how long the recovery took, and how any current drawdown stacks up against history back to 1871.

The S&P 500 Drawdown History Calculator

Using the S&P 500 Drawdown Calculator

The default view shows total-return drawdowns (dividends reinvested, nominal). Everything updates in real time as you toggle a setting.

  • Reinvest Dividends – on by default. Toggle off for the price-only drawdowns that closely match most published "biggest crashes ever" lists. But note, dividends meaningfully cushion drawdown depth and shorten time-to-new-high, so the price-only and total-return numbers can differ by a lot for the long episodes.
  • Adjust for Inflation – when on, drawdowns are computed in real (CPI-adjusted) terms.
  • Underwater chart – always zero or negative. It shows how far the index sits below its prior all-time high at every month. New highs reset the line to zero; bear markets pull it deep. The brush chart at the bottom defaults to the last 30 years; drag the handles to zoom out to 1871 or zoom in on a single crisis.
  • Highlights cards – eight headline stats: current drawdown depth and months underwater, deepest drawdown ever (and when), longest decline (peak → trough), longest recovery (trough → new high), longest total underwater stretch, bear-market count (≥20% drawdown), correction count (10–20% drawdowns), and the most recent 10%-plus drawdown.

Top 10 worst S&P 500 drawdowns

Below is the static reference table of the ten worst S&P 500 drawdowns on record – total-return based, peak month through trough month through new-high recovery month. Click to expand the chart.

Top 10 S&P 500 drawdowns table
📅 Data last updated: May 16, 2026
PeakTroughRecoveryDepthDeclineRecoveryUnderwater
Sep 1929Jun 1932Jan 1945-81.76%33 mo151 mo184 mo
Oct 2007Mar 2009Aug 2012-49.04%17 mo41 mo58 mo
Aug 2000Feb 2003Oct 2006-41.56%30 mo44 mo74 mo
Jan 1973Dec 1974Jul 1976-39.16%23 mo19 mo42 mo
Sep 1906Nov 1907Dec 1908-33.89%14 mo13 mo27 mo
Mar 1876Jun 1877Feb 1879-33.06%15 mo20 mo35 mo
Nov 1916Dec 1917May 1919-27.85%13 mo17 mo30 mo
Aug 1987Dec 1987May 1989-26.04%4 mo17 mo21 mo
Sep 1902Oct 1903Nov 1904-25.74%13 mo13 mo26 mo
Dec 1968Jun 1970Mar 1971-25.31%18 mo9 mo27 mo
S&P 500 total return drawdowns, Jan 1871 – May 2026, dividends reinvested.

Famous S&P 500 drawdowns in context

  • 1929–1932 (Great Depression) – the deepest drawdown in the dataset, by a wide margin. Even with dividends reinvested, the S&P 500 fell about 82% from September 1929 to June 1932. Recovery to a new total-return high didn't happen until January 1945 – over 15 years underwater. On a price-only basis (no dividends), the recovery took until September 1954.
  • 1973–1974 (Stagflation bear) – ~39% total-return drawdown from January 1973 to December 1974. Recovery to a new TR high came in mid-1976 – a fast bounce, helped by the era's high dividend yields. In real terms (toggle Adjust for Inflation), it was much worse: inflation was eating returns even as the nominal index recovered.
  • 2000–2003 (Dot-com bust) – peak August 2000, trough February 2003. About a 42% total-return drawdown, with recovery to a new high in October 2006 – just over six years total underwater.
  • 2007–2009 (Global Financial Crisis) – peak October 2007, trough March 2009, recovery to a new TR high in August 2012. A 49% total-return drawdown, the second-deepest on record after the Great Depression.
  • COVID 2020 – the daily-close drawdown reached about −34%, but on a monthly-average basis (what this tool uses) the shock barely registers in the top 10. The peak (Feb), trough (Mar), and new high (Aug) all happened within six months – too fast for monthly averages to capture the depth.

Methodology and sources

S&P 500 monthly prices and dividends come from Robert Shiller's compiled dataset, which extends back to 1871 by splicing the modern S&P 500 onto its pre-1957 predecessor indexes. Each monthly price is the average of that month's daily closes. The total-return series is built by reinvesting each month's dividend into more index shares at that month's price (the shares-purchased method). The underwater series at each month is the gap between the current level and the running maximum so far.

For detail on the construction of the underlying series, see DQYDJ's S&P 500 Return Calculator.

What is a drawdown?

A drawdown is how far an investment has fallen from its prior all-time high. At any moment, the drawdown is the percentage gap between the current value and the highest value the investment has ever reached. When the investment makes a new all-time high, the drawdown resets to zero. When the price drops below the prior peak, the drawdown is negative.

Formally, for any month t:

\text{drawdown}_t = \frac{V_t - \max(V_0, \ldots, V_t)}{\max(V_0, \ldots, V_t)}

That always produces a number between 0 (at a new high) and −1 (a 100% loss).

One caveat on my data: because we work from monthly-average prices, short sharp drawdowns like COVID 2020 and Black Monday 1987 understate the peak-to-trough depth that a daily-close chart would show – and the panic an investor might have felt in the moment.

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PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK lives in New Hampshire with his wife, kids, and dog.

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