Backtest assumptions

Uses closing prices that account for stock splits, along with dividend data.
When dividend reinvestment is selected, distributions are reinvested in the same asset.
You can choose no rebalancing, monthly, quarterly or yearly. Monthly and quarterly rebalancing happens on the period’s last trading day, and yearly on December’s last trading day. A final partial year without December is not rebalanced yearly.
Trading costs default to zero. Configured costs are included in trading profit and loss.
Recurring contributions occur at period end after that period's market return. They are excluded from TWRR but included with their timing in MWRR and final balance.

TWRR and annualized return

rₜ = (Vₜ − CFₜ) / Vₜ₋₁ − 1; TWRR = ∏(1 + rₜ) − 1

Investment returns are compounded and annualized after excluding the effect of deposits and withdrawals.

Balance growth CAGR is the annualized change in your balance, including deposits and withdrawals.

Maximum Drawdown (MDD)

MDD = min(Vₜ / running max(V) − 1) × 100%

The largest percentage decline from a peak to a trough. Daily and monthly drawdowns are shown separately.

Sharpe Ratio

Sharpe = mean(monthly return − monthly Rf) / sample SD(monthly excess return) × √12

Automatic rates follow the result currency: FRED TB3MS for USD and Bank of Korea CD91 for KRW. Each month uses the previous month’s observation, converted to a monthly return. CD91 is a short-term KRW rate proxy. Dependent risk-adjusted metrics show N/A when required rate data is missing.

Volatility

Volatility = sample SD(monthly cashflow-neutral returns) × √12

Annualizes the variability of monthly returns. Shown as N/A when required data is insufficient.

Rebalancing

Adjusts holdings to the target weights at your selected interval. You can also choose no rebalancing.

FIRE planning and the 4% heuristic

Target assets = annual spending ÷ withdrawal rate (25× annual spending at 4%)

The 4% rule is a planning guideline based on historical data. It does not guarantee future portfolio survival or safe withdrawals.

Projects your target date under the selected assumptions and explores portfolio survival after withdrawals using simulated paths.

Inflation assumptions and money basis are configurable in the FIRE inputs.
Dividend, asset-sale, and mixed funding strategies are modeled separately.
You can adjust the withdrawal rate.

Exchange-rate conversion

Converts portfolio value to KRW using daily USD/KRW closing rates. Non-trading days use the previous available rate.

Portfolio comparisons and rankings

Published results use USD, reinvested dividends, monthly rebalancing, no contributions and zero transaction costs. Backtest with your own amount, currency, contributions and dates.

All portfolios are compared at month-end.

Dates on each row are the actual analysis window. “—” means no verified metric for that allocation and period, rather than zero.

Usage aggregation

Backtest counts are grouped by asset combination for users who consent to statistics. Usage does not indicate investment performance or recommendations.

User backtests are counted across allocations of each asset combination. Projections do not affect ranks.

An in-progress week is compared with the full previous week.

Cash distribution comparisons

Compare pre-tax cash distributions from a $10,000 investment without reinvestment.

Compare the same completed calendar years using ex-dividend dates. Fixed shares, no reinvestment, contributions or rebalancing, before tax in USD. These are ex-date distributions, not payment-date deposits. Ending asset value is shown separately.

Income growth: last 5 complete years · fixed shares · independent of performance period

Portfolio complement comparisons

Completed monthly returns of the baseline portfolio and candidate allocation are blended at the selected weight to compare changes in risk and return. Drawdowns calculated from monthly returns can differ from daily backtests.

Popularity and past performance are not investment advice.