F
Forecast Desk

Projected balance

Chance of success

of simulated runs

Return rate, side by side

same contributions, events, and fees

If the return is a little different

Two points of annual return is the difference between a comfortable plan and a different life. Every other input is held fixed.

Same average return, different order

Year by year

How this calculates

Returns compound monthly at (1+r)^(1/12)−1, so an 8% input means a true 8% year rather than 8.30%. Contributions land at month end. Withdrawals come out at the start of the year you set, before that year's growth. Fees are taken monthly off the balance. Today's-dollar figures discount at your inflation rate.

The odds panel runs your full plan with random monthly returns drawn around your average at your volatility, and reports the share of runs finishing above your success floor without hitting zero along the way. Fat-tailed mode uses a Student-t draw with 4 degrees of freedom, rescaled to your volatility, because a normal distribution assigns near-zero probability to crashes markets actually deliver.

What this does not model

  • Historical bootstrapping — replaying real market sequences from 1871 forward, which captures the correlations and crash clustering random draws miss.
  • Regime switching — stock/bond correlation ran reliably negative through the 2000s and flipped positive in 2022. One volatility number cannot see that.
  • Stochastic inflation correlated with returns. Here inflation is a fixed input.
  • Asset-level modeling with rebalancing, correlation matrices, and tax-lot accounting. This uses one blended return and a proportional cost-basis estimate.
  • Longevity — planning to a joint life expectancy rather than a fixed number of years.
  • Outside income — Social Security, pensions, annuities, real estate, business interests.

Reading the number

A success rate in the high 80s or low 90s is generally considered a solid plan. Chasing 100% usually means you are underspending your own money. The gap between the 5th and 95th percentile is the honest width of the forecast; anyone showing you a single line is hiding it.

This is a projection tool, not advice, and I am not a financial advisor. No plan survives contact with a real market.

Portfolio Forecast Calculator

Most retirement calculators ask for three numbers and hand back one. This one doesn't. It runs your plan thousands of times against randomly drawn market returns, then shows you the full range of outcomes and the probability that your money lasts — which is the only honest way to answer a question about a future nobody can predict.

Everything is free, nothing is gated, and no account is required. Your inputs never leave your browser — we never see them.

What this calculator models

How to read the probability of success

Success means finishing above your floor without hitting zero along the way. Above 85% is strong — at that point the more useful question is usually whether you are underspending. Between 70% and 85% is workable but worth tightening, and small changes to spending, timing, or fees move the number considerably. Below 70% the plan fails in more than three of every ten runs and deserves attention.

Resist reading the number to the decimal point. A plan at 88% and a plan at 91% are the same plan. What matters is the width of the 5th-to-95th percentile spread and whether you could live with the bottom of it.

The fee lever

Of every input on this page, the advisor fee is usually the largest single lever you actually control. It is charged on the entire balance every year, so it compounds against you exactly as your returns compound for you. Set it to 1%, look at the ending balance, then set it to 0 and look again. That gap is what advice costs over your horizon — worth paying for if the advice is good, worth knowing either way.

Frequently asked questions

What is a Monte Carlo portfolio simulation?

Instead of assuming your portfolio earns the same return every year, a Monte Carlo simulation runs your plan thousands of times using randomly drawn yearly returns around your expected average. The result is a range of outcomes and a probability of success, rather than one falsely precise number.

What is a good probability of success?

Most planners treat 85% or higher as strong, 70–85% as workable but worth tightening, and below 70% as needing attention. A very high number can also signal that you are underspending rather than that the plan is optimal.

Why does the calculator use fat-tailed returns?

Real market returns produce extreme years more often than a normal bell curve predicts. The fat-tailed setting uses a Student-t distribution, which makes crashes and booms more likely and gives a more honest picture of downside risk.

How much does a 1% advisor fee actually cost?

Over a 30-year horizon a 1% annual advisor fee typically consumes a fifth to a quarter of the final balance, because the fee is charged on the whole balance every year and compounds against you. Turn the advisor fee on and off in this calculator to see the effect on your own numbers.

What is sequence-of-returns risk?

It is the risk that poor returns arrive early in retirement, while your balance is largest and you are withdrawing from it. The same average return can produce very different outcomes depending on the order the good and bad years arrive in.

Are these projections guaranteed?

No. Every figure is a projection based on the assumptions you enter. Real markets, inflation, tax law, and your own spending will differ. Treat the output as a planning tool, not a promise, and revisit it as your situation changes.

This calculator is free. Here’s how it stays that way.

A Monte Carlo engine like this one usually sits behind a subscription or a “book a call with an advisor” form. Ours doesn’t: no paywall, no account, and the numbers you model never leave your browser for us to store or sell.

Hosting, market-data feeds, and the hours spent building and checking each model do cost real money, and that comes out of one person’s pocket. If this tool gave you a clearer answer than the paid alternatives, a coffee helps fund the next one. It’s entirely optional — nothing here is ever locked behind it.

Buy Me a Coffee at ko-fi.com

Money and Technology Simply Explained

This calculator grows out of Brett Axler's Substack — breaking down money and investing with simple technology to help everyday humans reach financial freedom. Two Minute Tuesday is a short read to start your day, and a longer weekly piece digs into money, markets, and technology. New calculators get announced there first. It's free.

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