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📊 Investment Risk Simulator

Monte Carlo
Portfolio Simulator

Geometric Brownian Motion. Thousands of alternate market futures. Real quant finance — running entirely in your browser, 100% free.

GBM Math Value at Risk Sharpe & Sortino 6 Chart Types Stress Testing Zero Signup
5,000+
Simulation Paths
6
Live Chart Types
10+
Risk Metrics
GBM
Real Finance Math
100%
Free & Private
⚙️

Portfolio Settings

Investment Details
Initial Investment $10,000
Time Horizon 10 yrs
Annual Contribution $0
Contribution Growth/yr 0%
Market Parameters
Expected Return/yr 7%
Annual Volatility (σ) 15%
Simulation Paths
Mode
Asset Allocation
Quick Preset
🔒
100% Private & Free
All math runs in your browser. No data ever sent to servers.
📈

Simulation Results

🌱
Ready to Simulate
Configure your portfolio and click Run Simulation to see full risk analysis with 6 live charts.
How It Works

Real Financial Math, Explained

We use Geometric Brownian Motion — the same model behind Black-Scholes — running entirely in your browser.

Core Formulas Used in This Simulator

Rₜ = (μ − σ²/2) + σ·Z

GBM log-return each year. μ = expected return, σ = volatility, Z = standard normal random variable (Box-Muller transform)

Vₜ₊₁ = (Vₜ + C) × eᴿᵗ

Portfolio value update. V = current value, C = annual contribution, eᴿᵗ = exponential growth factor preventing negative prices

Sharpe = (μ − rƒ) / σ

Risk-adjusted return ratio. rƒ = 2% risk-free rate. Above 1.0 is excellent, 0.5–1.0 acceptable, below 0.5 poor.

VaR₉₅ = P5(finals)

Value at Risk at 95% confidence. The 5th percentile of all final portfolio values — worst outcome 95% of the time.

🎲

Monte Carlo Simulation

Instead of a fixed 7% growth rate, we simulate thousands of random market paths using real statistical distributions — showing the full range of possible futures.

📐

Geometric Brownian Motion

GBM is the gold standard in quantitative finance for modeling asset prices. It captures compounding, volatility, and log-normal returns — the same math behind Black-Scholes options pricing.

⚖️

Asset Allocation Engine

Adjust your mix across 5 asset classes with real historical return and volatility data. Weighted portfolio parameters are computed automatically from your allocation.

🛡️

Value at Risk (VaR)

VaR at 95% confidence tells you: in 95% of simulated scenarios, you won't lose more than this. Industry standard for institutional risk management.

📉

Historical Stress Testing

See how your portfolio survives the 2008 Financial Crisis, COVID crash, Dot-com bust, 1970s stagflation, and more — with recovery time projections.

🔒

Completely Private

All calculations happen in JavaScript in your browser. We never see your investment amounts or results. No account, no login, no tracking of any kind.

Frequently Asked Questions

A Monte Carlo simulation generates thousands of random market scenarios based on your expected return and volatility. Instead of assuming a straight 7% growth every year, it shows the full range of possible outcomes — from unlucky to lucky — giving you a realistic probability-based picture of risk.
GBM is the mathematical model most commonly used in quantitative finance to simulate asset prices. It models returns as log-normally distributed, ensuring prices can't go negative and compounding is correct. The formula Rₜ = (μ − σ²/2) + σ·Z is its core. This is the same math behind the Black-Scholes options pricing model.
VaR at 95% confidence means: in 95% of simulated scenarios, your portfolio doesn't lose more than this amount. If VaR is -$3,000 on a $10,000 portfolio, there's only a 5% chance of losing more than $3,000 over your time horizon.
The Sharpe Ratio measures return per unit of risk. Above 1.0 is excellent, 0.5–1.0 is acceptable, and below 0.5 suggests poor risk-adjusted return. It's (Return − Risk-Free Rate) ÷ Volatility, using 2% risk-free.
Both measure risk-adjusted return. Sharpe divides by total volatility (up and down). Sortino only penalizes downside volatility — it's considered more realistic since investors only care about losing money, not winning. Higher Sortino is always better.
Withdrawal mode simulates drawing money from your portfolio each year instead of adding to it. It calculates ruin probability — the chance your portfolio hits $0. This is the most critical metric for retirement planning.
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