
Monte Carlo Simulation models
What is Monte Carlo Simulation?
Also referred to as probability simulation or Monte Carlo method, Monte Carlo simulations are used to model the probability of different outcomes in a process that cannot easily be predicted due to the intervention of random variables. It is used to further understand the impact of risk and uncertainty in prediction and forecasting models. They can be used to tackle a great range of problems such as areas in engineering, finance, science etc.
How does a Monte Carlo Simulation Work?
Monte Carlo simulation carries out risk analysis by building models of possible results. It does this by substituting a range of values (a probability distribution) for any factor that incorporates uncertainty. Then, it calculates results several times, while using a different set of random values from the probability functions each time. A Monte Carlo simulation could involve thousands of recalculations before it is complete, depending on the amount of uncertainties and the ranges specified for them. The simulation produces distributions of possible outcome values.
As a result of using probability distributions, variables can have different probabilities of different outcomes occurring. Probability distributions are a much more realistic way of describing uncertainty in variables of a risk analysis.
Applications:
• In Finance: Monte Carlo is used in corporate finance to model components of project cash flow, which are impacted by uncertainty. It is also used for option pricing, pricing fixed income securities and interest rate derivatives. However, it is more extensively used in portfolio management and personal financial planning. • Portfolio Management: Monte Carlo allows an analyst to determine the portfolio size required at retirement to support the desired retirement lifestyle and other desired gifts and bequests. It factors in a distribution of reinvestment rates, inflation rates, asset class returns, tax rates and even possible life spans. The result is a distribution of portfolio sizes with the probabilities of supporting the client's desired spending needs.
Most popular models
- Model to calculate the expected value and return of an investment over an investment period using Monte Carlo simulation1,9402add_shopping_cart$30.00
by Projectify
Compute Incremental Risk Charge for a Bond Using Monte Carlo Simulation
A prototype to compute the incremental risk charge (IRC) for a bond position using a novel monte carlo simulation.4202add_shopping_cart$299.00by Satish Ramanathan
Monte-Carlo Simulation - Forecast - Key Performance Indicators - Gold Mining Industry
Monte-Carlo simulation to determine select KPI's for a Gold Mine.4221add_shopping_cart$29.00by Anthony Gebert
Monte Carlo Simulation Excel Template
This model aims to predict probable outcomes by running numerous simulations.2,8732add_shopping_cart$5.00by Alberto Scappini
OneClick Monte Carlo Simulation for Revenue in Python
OneClick Monte Carlo python script to simulate Revenue for a firm626Discussadd_shopping_cart$10.00by Rizwan Ahmed Surhio
DCF (Discounted Cash Flow) Excel Monte Carlo Simulation Model
A simplified DCF (Discounted Cash Flow) Monte Carlo Simulation model in Excel4,3151add_shopping_cart$10.00by Hans Ensing
Hydro Excel Model - with Commodity Price Risk and Monte Carlo Simulation
Financial model for hydro investments including commodity price risk and monte carlo simulation1,7492add_shopping_cart$50.00by Prof. Ed Bodmer
Commodity Price Risk and Monte Carlo Simulation - Project Finance Excel Model
A commodity price risk model with Monte Carlo simulation within a project finance excel model.1,192Discussadd_shopping_cart$5.00by Prof. Ed Bodmer
Monte Carlo Simulation Excel Model
Monte Carlo Model generated in excel with explanatory article included to guide you block-by-block through the code.1,239Discussadd_shopping_cartfreeby Frank Gary
FIFA World Cup 18 - Monte Carlo Simulation Model
FIFA World Cup 18 Monte Carlo Simulation Model1,1082add_shopping_cartOneClick Australian Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.143Discussadd_shopping_cartOneClick US S&P Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.4923add_shopping_cartOneClick FTSE London Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.116Discussadd_shopping_cartOneClick Japan Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.39Discussadd_shopping_cartOneClick Singapore Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.42Discussadd_shopping_cartOneClick Hong Kong Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.43Discussadd_shopping_cart
priced models
Hydro Excel Model - with Commodity Price Risk and Monte Carlo Simulation
Financial model for hydro investments including commodity price risk and monte carlo simulation1,7492add_shopping_cart$50.00by Prof. Ed Bodmer
Commodity Price Risk and Monte Carlo Simulation - Project Finance Excel Model
A commodity price risk model with Monte Carlo simulation within a project finance excel model.1,192Discussadd_shopping_cart$5.00by Prof. Ed Bodmer
Investment Return Monte Carlo Simulation Excel Model Template
Model to calculate the expected value and return of an investment over an investment period using Monte Carlo simulation1,9402add_shopping_cart$30.00by Projectify
OneClick Monte Carlo Simulation for Revenue in Python
OneClick Monte Carlo python script to simulate Revenue for a firm626Discussadd_shopping_cart$10.00by Rizwan Ahmed Surhio
DCF (Discounted Cash Flow) Excel Monte Carlo Simulation Model
A simplified DCF (Discounted Cash Flow) Monte Carlo Simulation model in Excel4,3151add_shopping_cart$10.00by Hans Ensing
Monte Carlo Simulation Excel Template
This model aims to predict probable outcomes by running numerous simulations.2,8732add_shopping_cart$5.00by Alberto Scappini
Compute Incremental Risk Charge for a Bond Using Monte Carlo Simulation
A prototype to compute the incremental risk charge (IRC) for a bond position using a novel monte carlo simulation.4202add_shopping_cart$299.00by Satish Ramanathan
Monte-Carlo Simulation - Forecast - Key Performance Indicators - Gold Mining Industry
Monte-Carlo simulation to determine select KPI's for a Gold Mine.4221add_shopping_cart$29.00by Anthony Gebert
Yield Curve Simulation Excel Model & Automated Commentary
Yield Curve Simulation Model (automated commentary) showing global impacts of yield curves on bond valuations365Discussadd_shopping_cart$25.00by Lance Rubin
Monte Carlo Simulation in Excel
The model presents an example of a Monte Carlo Simulation using excel to estimate an investment's Net Present Value.380Discussadd_shopping_cart$30.00by Big4WallStreet
Newly published
Investment Return Monte Carlo Simulation Excel Model Template
Model to calculate the expected value and return of an investment over an investment period using Monte Carlo simulation1,9402add_shopping_cart$30.00by Projectify
Monte Carlo Simulation for Calculating Pi
Demonstration of a calculation estimation the value of pi with Monte Carlo simulations in Excel270Discussadd_shopping_cartfreeby Aram K
OneClick US S&P Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.4923add_shopping_cartMonte Carlo Analysis (without macros) Excel Model
This post explains how to run full Monte Carlo analysis in Excel without macros3,7654add_shopping_cartfreeby Andrei Okhlopkov
Monte Carlo Simulation in Excel
The model presents an example of a Monte Carlo Simulation using excel to estimate an investment's Net Present Value.380Discussadd_shopping_cart$30.00by Big4WallStreet
Yield Curve Simulation Excel Model & Automated Commentary
Yield Curve Simulation Model (automated commentary) showing global impacts of yield curves on bond valuations365Discussadd_shopping_cart$25.00by Lance Rubin
Monte-Carlo Simulation - Forecast - Key Performance Indicators - Gold Mining Industry
Monte-Carlo simulation to determine select KPI's for a Gold Mine.4221add_shopping_cart$29.00by Anthony Gebert
Monte Carlo Simulation Excel Template
This model aims to predict probable outcomes by running numerous simulations.2,8732add_shopping_cart$5.00by Alberto Scappini
OneClick Switzerland Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.63Discussadd_shopping_cartOneClick Saudi Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.114Discussadd_shopping_cartOneClick New Zealand Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.41Discussadd_shopping_cartOneClick Ireland Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.38Discussadd_shopping_cartOneClick Indian Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.63Discussadd_shopping_cartOneClick Toronto Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.44Discussadd_shopping_cartOneClick Malaysian Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.39Discussadd_shopping_cartOneClick Shanghai Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.41Discussadd_shopping_cart
Full catalog
Hydro Excel Model - with Commodity Price Risk and Monte Carlo Simulation
Financial model for hydro investments including commodity price risk and monte carlo simulation1,7492add_shopping_cart$50.00by Prof. Ed Bodmer
OneClick US S&P Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.4923add_shopping_cartCommodity Price Risk and Monte Carlo Simulation - Project Finance Excel Model
A commodity price risk model with Monte Carlo simulation within a project finance excel model.1,192Discussadd_shopping_cart$5.00by Prof. Ed Bodmer
Monte Carlo Simulation Excel Model
Monte Carlo Model generated in excel with explanatory article included to guide you block-by-block through the code.1,239Discussadd_shopping_cartfreeby Frank Gary
Monte Carlo Analysis (without macros) Excel Model
This post explains how to run full Monte Carlo analysis in Excel without macros3,7654add_shopping_cartfreeby Andrei Okhlopkov
FIFA World Cup 18 - Monte Carlo Simulation Model
FIFA World Cup 18 Monte Carlo Simulation Model1,1082add_shopping_cartInvestment Return Monte Carlo Simulation Excel Model Template
Model to calculate the expected value and return of an investment over an investment period using Monte Carlo simulation1,9402add_shopping_cart$30.00by Projectify
OneClick Monte Carlo Simulation for Revenue in Python
OneClick Monte Carlo python script to simulate Revenue for a firm626Discussadd_shopping_cart$10.00by Rizwan Ahmed Surhio
DCF (Discounted Cash Flow) Excel Monte Carlo Simulation Model
A simplified DCF (Discounted Cash Flow) Monte Carlo Simulation model in Excel4,3151add_shopping_cart$10.00by Hans Ensing
Monte Carlo Simulation Excel Template
This model aims to predict probable outcomes by running numerous simulations.2,8732add_shopping_cart$5.00by Alberto Scappini
Monte Carlo Simulation for Calculating Pi
Demonstration of a calculation estimation the value of pi with Monte Carlo simulations in Excel270Discussadd_shopping_cartfreeby Aram K
OneClick Australian Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.143Discussadd_shopping_cartOneClick Saudi Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.114Discussadd_shopping_cartCompute Incremental Risk Charge for a Bond Using Monte Carlo Simulation
A prototype to compute the incremental risk charge (IRC) for a bond position using a novel monte carlo simulation.4202add_shopping_cart$299.00by Satish Ramanathan
Monte-Carlo Simulation - Forecast - Key Performance Indicators - Gold Mining Industry
Monte-Carlo simulation to determine select KPI's for a Gold Mine.4221add_shopping_cart$29.00by Anthony Gebert
OneClick FTSE London Stock Prediction Using Monte Carlo and Brownian Motion in Python
Monte Carlo and Brownian Motion Models Python script to predict future stock movements.116Discussadd_shopping_cart- Have a Monte Carlo Simulation Model to Share?
Your Monte Carlo Simulation Excel Model
Publish your model
Learn more about digital publishing