Monte Carlo Simulation for Retirement
Plan your financial future with confidence using our free Monte Carlo retirement simulator—empowering you to make smarter financial decisions.
01 / YOUR INPUTS
Monte Carlo Simulation
In 500 random market scenarios, you achieved your retirement goal of the time.
How it works & examples
How to interpret the retirement simulation
Explore 500 modeled portfolio paths between your current age and planned retirement age. Each path varies investment returns around the assumptions you enter.
How to use this tool
Set your starting net worth, annual post-tax income and spending, retirement target, ages, inflation, income growth, asset allocations, and mean returns. Allocations should total 100%. Success is the fraction of simulated ending balances at or above your target.
Example
If 350 of the 500 paths finish with at least your $1,000,000 target, the displayed modeled success rate is 70%. Repeating the simulation can give a different result.
Understanding your result
The tool models accumulation until retirement, not withdrawals over the rest of your life. It uses fixed annual volatility assumptions of 18% for stocks, 5% for bonds, and 0.5% for cash and other assets, without asset correlations. Market outcomes can differ substantially from these assumptions.