Monte Carlo Retirement Calculator

Simulation Complete

Your plan's success rate is:

The chart above, known as a 'spaghetti chart', overlays 50 possible future trajectories of your portfolio. Each thin line represents one simulated 'lifetime' for your investments, subject to random market conditions.

This tool uses a Monte Carlo simulation. Instead of a fixed annual return, it runs thousands of scenarios where the return varies randomly each year. The final success rate is the percentage of simulations where your money lasted.

💡 Useful Concepts

• Monte Carlo Simulation: A method that runs thousands of randomized simulations to model the probability of different outcomes, giving a more realistic view of risk.
• Sequence of Returns Risk: The danger that a major market downturn early in your retirement could permanently damage your portfolio's ability to last.
• Standard Deviation (Volatility): A measure of how much an investment's returns vary from its average return. A higher number means a "bumpier ride".