This application will allow you to forecast your capital
accumlation over any time period up to 40 years. It will take your
monthly contributions plus the rate of return on your capital and
also the inflation rate into consideration. This is especially
useful for people who are investing in a work savings plans such as
a 401K. It assumes you know your monthly deposit rate, plus the
rate of return and volatility of your capital assets. This
information can be obtained from this return and
risk calculator. The volatility is measured by the standard
deviation of the asset or portfolio. The defaults below assume you
will retire in 10 years time, you're starting with $100,000,
getting a rate of return of 7% with an annual risk level of 7%.
Inflation is set at 2.5% with a volatility of 1.5% and you're
contributing $2,500 every month. The default simulation is run 25
times. The R code used for the simulation is available here.