On-chip demagnetization refrigeration has recently emerged as a powerful tool for reaching microkelvin electron temperatures in nanoscale structures. The relative importance of cooling on-chip and off-chip components and the thermal subsystem dynamics are yet to be analyzed. We study a Coulomb blockade thermometer with on-chip copper refrigerant both experimentally and numerically, showing that dynamics in this device are captured by a first-principles model. Our work shows how to simulate thermal dynamics in devices down to microkelvin temperatures, and outlines a recipe for a low-investment platform for quantum technologies and fundamental nanoscience in this novel temperature range.