Net Worth Predictor
Predict your future net worth using advanced Monte Carlo simulations. Get realistic forecasts based on your income, savings, and investment returns.
Parameters
Results
Ready to Predict Your Future?
Enter your financial parameters on the left and click "Calculate Predictions" to see how your wealth could grow over time.
How It Works
Understanding Monte Carlo simulation and financial projections
Monte Carlo Simulation
Instead of giving you just one prediction, we run thousands of different scenarios (simulations) to show you the range of possible outcomes. Think of it like rolling dice thousands of times to understand all the ways your investments might perform. Markets don't move in straight lines—some years are great, others are terrible. Monte Carlo helps you see the full picture.
Box-Muller Transform
This mathematical technique converts random numbers into realistic market returns that follow a 'bell curve' distribution—just like real market behavior. Most returns cluster around the average, with occasional extreme highs and lows. Instead of unrealistic coin-flip randomness, we simulate market behavior that mirrors historical patterns: most months near average, occasional big swings.
Understanding Scenarios
Pessimistic (10th Percentile)
Only 10% of simulations performed worse than this. If things go poorly, this is likely the worst you'll experience. Good for conservative planning.
Realistic (50th Percentile - Median)
Half of simulations performed better, half performed worse. This is your "most likely" outcome based on typical market conditions.
Optimistic (90th Percentile)
Only 10% of simulations performed better. If markets are strong, this is a reasonable upper bound. Don't count on exceeding this.
Inflation Adjustment
All results are shown in "real" (inflation-adjusted) dollars, showing what your money can actually buy in today's purchasing power. A million dollars in 30 years isn't worth a million dollars today!
Example: At 2% inflation, $100,000 in 20 years will only buy what $67,297 buys today. We account for this automatically.
Volatility
Volatility measures how bumpy the ride is. Higher volatility means more uncertainty— bigger swings up and down. Stocks typically have 15-20% volatility, bonds 5-10%.
Rule of thumb:
- 5-8%: Conservative (mostly bonds)
- 10-15%: Balanced (mix of stocks and bonds)
- 15-20%: Aggressive (mostly stocks)
- 25%+: Very aggressive (high-risk investments)
Important Limitations
- Past performance doesn't guarantee future results
- This tool assumes you maintain consistent contributions (no job loss, emergencies, etc.)
- Real markets can be more extreme than simulations suggest
- Taxes, fees, and transaction costs are not included
- This is educational only - not financial advice