Microsoft Corporation (MSFT) Stock Investment Calculator & Historical Return Analysis
Microsoft Corporation is a global technology powerhouse that develops, licenses, and supports a wide range of software products, services, and devices. As of 2026, the company has successfully transitioned into an 'AI-first' organization, leveraging its strategic partnership with OpenAI to integrate generative AI across its entire tech stack. Microsoft is the dominant provider in enterprise computing through its Windows operating system and Office productivity suite, and it is a leading player in the global cloud market with Azure. Its business model centers on digital transformation, cloud infrastructure, and the emerging economy of autonomous AI agents. Investors often view Microsoft Corporation as a key player in the market, analyzing its long-term potential through various revenue models, brand recognition, and consistent presence in its industry.
This Microsoft Corporation stock investment calculator allows you to explore how a hypothetical investment in MSFT might have performed over time. By adjusting the investment amount and time period, you can visualize potential growth, compare outcomes across different market cycles, and better understand the impact of long-term investing.
What if you invested $1000 in Microsoft on Jan 1, 2020?
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Understanding Microsoft Corporation's Historical Performance
Microsoft Corporation's stock performance has historically reflected both broader market trends and company-specific milestones. Like many growth-oriented stocks, MSFT has experienced periods of growth driven by innovation and market demand.
When analyzing Microsoft Corporation's historical returns, it's important to consider:
- Market cycles: Strong bull markets often amplify returns, while recessions can temporarily suppress performance.
- Business model evolution: Changes in revenue strategies and product lines can significantly impact stability.
- Long-term trends: Over extended periods, compounding can play a larger role than short-term price fluctuations. Try our calculator to explore returns over 5 years or larger investments over 10 years.
This calculator helps you see how these factors might have affected an investment depending on when you entered the market.
Historical Annual Returns
Over the past 40 years, Microsoft Corporation has delivered an average annual return of 31.7%. The stock peaked in 1987 with a massive +127.2% gain, while investors faced a downturn in 2000 (-62.8%). Overall, the stock finished in the green 31 times out of 40 years.
Avg Return
+31.7%
Win Rate
78%
31W - 9L
Best
+127.2%
1987
Worst
-62.8%
2000
Performance Consistency
Microsoft Corporation Annual Returns by Year
| Year | Annual Return | Start Price | End Price |
|---|---|---|---|
| 1986 | +72.32% | $0.06 | $0.10 |
| 1987 | +127.22% | $0.10 | $0.23 |
| 1988 | -4.91% | $0.24 | $0.23 |
| 1989 | +62.24% | $0.23 | $0.37 |
| 1990 | +69.58% | $0.38 | $0.64 |
| 1991 | +123.24% | $0.64 | $1.42 |
| 1992 | +12.34% | $1.45 | $1.63 |
| 1993 | -5.29% | $1.63 | $1.54 |
| 1994 | +52.57% | $1.53 | $2.34 |
| 1995 | +45.79% | $2.30 | $3.36 |
| 1996 | +84.12% | $3.43 | $6.32 |
| 1997 | +58.35% | $6.24 | $9.89 |
| 1998 | +111.53% | $10.03 | $21.22 |
| 1999 | +65.60% | $21.57 | $35.73 |
| 2000 | -62.79% | $35.67 | $13.27 |
| 2001 | +52.74% | $13.27 | $20.27 |
| 2002 | -22.88% | $20.51 | $15.82 |
| 2003 | +2.80% | $16.44 | $16.90 |
| 2004 | +8.81% | $16.95 | $18.44 |
| 2005 | -1.01% | $18.45 | $18.27 |
| 2006 | +12.86% | $18.75 | $21.16 |
| 2007 | +20.84% | $21.16 | $25.57 |
| 2008 | -43.79% | $25.30 | $14.22 |
| 2009 | +53.44% | $14.87 | $22.82 |
| 2010 | -7.94% | $23.17 | $21.33 |
| 2011 | -4.75% | $21.39 | $20.37 |
| 2012 | +2.60% | $21.00 | $21.55 |
| 2013 | +39.54% | $22.28 | $31.10 |
| 2014 | +28.42% | $30.89 | $39.67 |
| 2015 | +21.88% | $39.93 | $48.67 |
| 2016 | +16.51% | $48.07 | $56.01 |
| 2017 | +39.74% | $56.40 | $78.82 |
| 2018 | +20.22% | $79.20 | $95.21 |
| 2019 | +58.26% | $94.79 | $150.01 |
| 2020 | +39.94% | $152.79 | $213.82 |
| 2021 | +55.79% | $209.27 | $326.03 |
| 2022 | -27.69% | $324.50 | $234.66 |
| 2023 | +58.35% | $234.42 | $371.21 |
| 2024 | +14.50% | $366.11 | $419.20 |
| 2025 | +16.17% | $416.29 | $483.62 |
Historical annual returns for Microsoft Corporation. Data shows year-over-year percentage change in stock price.
Why Use a "What If" Stock Calculator?
Many investors wonder questions such as:
- What if I had invested 5 years ago?
- How does timing affect long-term returns?
- What role does compounding play in stock investments?
A what-if investment calculator answers these questions by turning historical data into practical insights. Rather than focusing on daily price movements, it encourages a long-term perspective, which is especially useful for retirement planning, portfolio comparisons, and financial education.
Key Innovations
- ✓Azure AI Services & Copilot Ecosystem
- ✓Windows 11 and Next-Gen 'Copilot+' AI PC architecture
- ✓Microsoft 365 Copilot (Generative AI for productivity)
- ✓HoloLens and Mixed Reality (Industrial Metaverse)
- ✓Custom Silicon: Azure Maia AI Accelerator and Azure Cobalt CPU
- ✓Topological Quantum Computing (Majorana 1 chip)
- ✓Agentic AI: Autonomous digital coworkers built on Copilot Studio
Business Segments
- Intelligent CloudThe company's primary growth engine, consisting of public, private, and hybrid server products and cloud services. Key offerings include Azure—a comprehensive cloud platform for computing, networking, and AI—as well as SQL Server, Windows Server, GitHub, and Nuance Healthcare. In 2026, this segment is heavily focused on scaling AI 'superfactories' and providing the infrastructure for large-scale generative AI workloads.
- Productivity and Business ProcessesFocuses on productivity, communication, and information services. It includes Microsoft 365 (formerly Office), which has evolved into a Copilot-integrated subscription service for both commercial and consumer users. This segment also encompasses LinkedIn (talent and marketing solutions), Dynamics 365 (cloud-based ERP and CRM), and the Microsoft Power Platform for low-code development and hyperautomation.
- More Personal ComputingEncompasses products and services geared toward end-users and developers across devices. This includes Windows OEM and commercial licensing, Surface devices, Search and news advertising (Bing and Copilot), and Gaming. Following the acquisition of Activision Blizzard, the Gaming division includes Xbox hardware, content, and services like Game Pass, making Microsoft one of the largest video game publishers globally.
How to Interpret the Results
The results shown are based on historical performance and are meant for educational and informational purposes only. They do not account for future market conditions, taxes, transaction fees, or individual investment strategies. Past performance does not guarantee future results, but historical analysis can help investors understand risk, volatility, and growth potential.
For best use:
- Compare multiple time ranges to see how outcomes differ
- Use consistent assumptions across different stocks
- Combine this tool with fundamental research and diversification principles