The monochromatic driving of a quantum system is a successful technique in quantum simulations, well captured by an effective Hamiltonian approach, and with applications in artificial gauge fields and topological engineering. Here, we investigate multichromatic Floquet driving for quantum simulation. Within a well-defined range of parameters, we show that the time coarse-grained dynamics of such a driven closed quantum system is encapsulated in an effective master equation for the time-averaged density matrix, that evolves under the action of an effective Hamiltonian and tunable Lindblad-type dissipation or quantum gain terms. As an application, we emulate the dissipation induced by phase noise and incoherent emission or absorption processes in the bichromatic driving of a two-level system, and reproduce the phase decoherence in a harmonic oscillator model.