Accessibility Menu

What Is a Monte Carlo Simulation?

By Anders BylundUpdated Oct 12, 2025 at 11:27 PM

Key Points

  • Monte Carlo simulations predict investment risks and returns using computer models.
  • They enable investors to assess outcomes under various market conditions.
  • Accessible tools like online calculators allow personal Monte Carlo simulations.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.