Many aspects of the design trade-off of a space-based instrument and its performance can best be tackled through simulations of the expected observations. The complex interplay of various noise sources in the course of the observations make such simulations an indispensable part of the assessment and design study of any space-based mission. We present a formalism to model and simulate photometric time series of CCD images by including models of the CCD and its electronics, the telescope optics, the stellar field, the jitter movements of the spacecraft, and all important natural noise sources. This formalism has been implemented in a versatile end-to-end simulation software tool, called PLATO Simulator, specifically designed for the PLATO space mission to be operated from L2, but easily adaptable to similar types of missions. We provide a detailed description of several noise sources and discuss their properties, in connection with the optical design, the allowable level of jitter, the quantum efficiency of the detectors, etc. The expected overall noise budget of generated light curves is computed as a function of the stellar magnitude, for different sets of input parameters describing the instrument properties. The simulator is offered to the scientific community for future use.