Rate & Calculation Assumptions
Inflation Rate Assumptions
Inflation erodes purchasing power over time. Set different scenarios to accurately project your finances.
4.0%
Higher inflation scenario (typically 3-5%)
2.5%
Base assumption for most calculations (typically 2-3%)
1.0%
Lower inflation scenario (typically 1-2%)
Monte Carlo Simulation Assumptions
- Number of Simulations: 1,000
- Volatility: Calculated as (Optimistic - Pessimistic) / 3.29
- Market Momentum: Small cyclical adjustment using sine wave
- Return Distribution: Normal distribution with calculated volatility
- Percentile Reporting: 10th (Pessimistic), 50th (Median), 90th (Optimistic)
Tax Calculation Assumptions
Progressive Tax Brackets
- 10% on first $10,000
- 12% on income between $10,000 - $40,000
- 22% on income between $40,000 - $85,000
- 24% on income between $85,000 - $165,000
- 32% on income between $165,000 - $210,000
- 35% on income between $210,000 - $520,000
- 37% on income over $520,000