FIRE calculator
At what level of capital do your returns cover your living costs? The calculator shows your target capital and how long it takes to get there, factoring in monthly savings, inflation and, if you like, taxes. Swiss format, no sign-up needed.
Capital and target capital over time
How much does everything depend on the withdrawal rate?
Same inputs, only the withdrawal rate varies. Note the direction: the higher the rate, the less capital you need, because the same amount in francs can then make up a larger share of your assets. So you reach your goal sooner, but you take on more risk that the money will not last a lifetime.
| Withdrawal rate | Target capital (today's purchasing power) | Duration | Reached | Safety buffer |
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Note: A simplified model with a constant return. Real markets fluctuate, and bad years can have a lasting effect, especially at the start of the withdrawal phase. Taxes are only included to the extent that you enter them in the “Taxes per year” field. Not investment advice.
Financial independence: how to use the calculator properly
What the calculator does
Behind the question “when is my capital enough” lies a simple division: annual expenses divided by the withdrawal rate gives you your target capital, often called the FIRE number (Financial Independence, Retire Early). With CHF 3'200 in expenses per month, that is CHF 38'400 a year, and at a 4% withdrawal rate you need CHF 960'000 to cover it. The calculator takes this target and lets your current capital grow at your assumed return, month by month, with your monthly savings added on top. As soon as the curve crosses the target, you have made it, on paper.
The difference from a back-of-the-napkin calculation: the target does not stand still. Because your expenses rise with inflation, the capital you need grows too. That is why the calculator shows you two lines, your capital and a target that grows along with it. This gap is exactly why a plain compound interest calculation regularly puts the date too early.
The withdrawal rate is the most important assumption
The well-known 4% rule comes from US studies with a portfolio of stocks and bonds and a time horizon of 30 years. Anyone who stops working at 45, however, is more likely to be planning for 45 years. That is why many people calculate more cautiously, with 3 to 3.5%. The table below the chart shows you live what that changes: between 3% and 5%, the target capital differs by almost a factor of two. The direction matters here: a higher withdrawal rate lowers the capital you need, because the same amount in francs can then make up a larger share of your assets. You reach the goal sooner, but you buy that with risk. Conversely: if you withdraw the full expected return, say 7% on a 7% assumption, you have zero buffer for bad market years and eat into your capital during losing phases.
Two more levers are worth trying out. First, the monthly savings rate: it usually shortens the time more than a more optimistic return, and it is the only quantity you control yourself. Second, your expenses: every CHF 100 less per month lowers the target capital at 4% by CHF 30'000.
What works differently in Switzerland
Capital gains on private assets are tax-free, but dividends and interest are subject to income tax, plus cantonal wealth tax. How much tax you pay in retirement therefore depends heavily on whether your portfolio distributes or accumulates, and on which canton you live in. Enter your estimate in the “Taxes per year” field and the calculator adds it to your expenses; with 0 you deliberately stay tax-free.
One point that international FIRE calculators do not know: anyone who systematically lives off realised capital gains risks being classified as a professional securities dealer, and then the gains suddenly become taxable. Anyone who sits tight and spends the distributions is on the safe side. And finally: only enter freely available capital. Pension fund and Pillar 3a are locked in until shortly before the reference age; they only contribute to your income afterwards and then noticeably reduce the capital you need. The retirement calculator works through how this second part looks; for the tax on a later lump-sum withdrawal, see the canton comparison (in German).
The quickest way to get a feel for it is to vary two numbers above: the withdrawal rate and your monthly savings rate. Between the two settings, there is usually a decade of difference.
Frequently asked questions about financial independence
What is the FIRE number?
The capital at which your returns cover your living costs: annual expenses divided by the withdrawal rate. With CHF 38'400 in expenses and a 4% withdrawal rate, that is CHF 960'000, often described as “25 times your annual expenses”.
Is the 4% rule suitable for Switzerland?
As a rule of thumb yes, as a guarantee no. It comes from US studies covering 30 years. If you stop working earlier, you are planning for longer and are better off calculating with 3 to 3.5%. Try different withdrawal rates in the calculator; the scenario table shows the difference immediately.
Are Swiss taxes included?
Only to the extent that you enter them. The “Taxes per year” field adds an estimated amount to your expenses; with 0 you deliberately calculate without them. In Switzerland, capital gains on private assets are tax-free, but dividends and interest are subject to income tax, plus cantonal wealth tax.
Do pension fund and Pillar 3a count?
No, only enter freely available capital. Both balances are locked in until shortly before the reference age and are not available for an early withdrawal phase. Afterwards they significantly reduce the capital you need; the retirement calculator works that out.
Why does the target capital fall when I raise the withdrawal rate?
Because the withdrawal rate is the denominator: target capital is annual expenses divided by the withdrawal rate. Your expenses stay the same; the rate only says what share of your assets that amount may make up. At 3%, CHF 38'400 has to be exactly 3% of your assets, which takes CHF 1'280'000. At 5%, CHF 768'000 is enough. But you buy the smaller target capital with risk: the closer the withdrawal is to the expected return, the less buffer remains for bad market years.
Why does the target capital rise in the chart?
Because your expenses grow with inflation. At 1.5% inflation, you need roughly a third more capital in 20 years for the same standard of living. Set inflation to 0 if you want to calculate purely in today's purchasing power.
Calculate with your real numbers
Geldfuchs knows your actual accounts, ETFs, Pillar 3a and pension fund, and draws your money lifeline up to age 100, with taxes calculated for your specific canton.
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