Using Monte Carlo simulations is an ideal way to model the unpredictable outcomes of different investment strategies. With regards to the Real Estate Financial Planner™ it allows us to study how a
Scenario (collection of
Accounts,
Properties,
Rules, and
Goals) responds to randomly generated inputs for variables such as interest rate, appreciation, inflation, and rate of return for stocks, bonds, or other investments.

Open The
Scenario
First, from the Scenarios page select the
Scenario on which you want to run
Monte Carlo. Click the title of the
Scenario to open it and scroll down past the Scenario Description to Number of
Monte Carlo Simulations to Run.
Enter the number of Monte Carlo simulations you would like to run and then hit the Save button. Next, click the orange Run Analysis button underneath the title of the
Scenario.
You will be redirected to the Scenarios page where you can see that the
Monte Carlo
Scenario is queued to process.
Once the status bar says “Complete” you can open the Charts.
Monte Carlo
You can read more about Monte Carlo simulations by checking out the blog posts below.