01
About the calculations
Historical backtesting shows how your plan would have performed in specific past periods, but there are only a limited number of historical 30-year windows to test. Monte Carlo simulation generates thousands of unique scenarios by sampling from historical return distributions, giving you a more robust picture of possible outcomes. It's particularly valuable for stress-testing your plan against sequences of returns that haven't occurred historically but are statistically plausible.
02
Data & assumptions
03
Using the results
04
Comparisons
Still have a question?
If the answer isn't here, the methodology page shows the full math — or reach out and we'll walk you through it.