How much do you need to accumulate to live off your capital without ever working again? That is the central question of financial independence — and the answer is not a universal figure. It depends on your age, your actual expenses, your assets and the withdrawal strategy you choose.
This free calculator answers that question with precision. It is the first French-language tool to integrate the VPW (Variable Percentage Withdrawal) method — an adaptive approach that adjusts the withdrawal rate each year based on your age and your portfolio allocation — unlike the rigid 4% rule, which cannot adapt to market reality or your life expectancy.
For Swiss residents and expats, the tool also integrates AVS capitalisation and the Swiss pension pillar system (2nd and 3rd pillars), features typically ignored by generic calculators — yet decisive for correctly estimating your usable net worth. Click the "📖 User guide" link inside the calculator for a detailed description of each section and your results.
🎯 FIRE Calculator
Calculate your FIRE number with the VPW method
📋 Personal information
💰 Your accounts
🇨🇭 AVS/AHV (Swiss employees only)
💵 Your income outside the Rat Race
📊 Withdrawal method
VPW adapts to your age, portfolio allocation and its actual performance, unlike the rigid 4% rule which can leave you impoverished or create wealthy heirs.VPW vs the 4% rule: which approach should you choose?
The 4% rule — also known as the Bengen rule — emerged from a US study in the 1990s, calibrated on a 30-year horizon with a 60/40 stock/bond portfolio. It states that you can withdraw 4% of your initial capital in the first year, then adjust that amount for inflation each year, without risking portfolio exhaustion over that period. Simple and intuitive, it serves as a useful approximation. But it has two major limitations:
- It is rigid: the amount withdrawn does not adapt to your portfolio's actual performance, nor to changes in your needs. If markets underperform, you risk depleting your capital; if markets do well, you risk dying with a largely untouched surplus.
- It is calibrated for 30 years: if you reach financial independence at 40 or 45, your horizon may exceed 50 years — territory the 4% rule was never designed for.
The VPW (Variable Percentage Withdrawal) method solves both problems. The withdrawal rate is recalculated each year based on your age and your portfolio allocation. The older you get, the higher the rate — you withdraw more at 70 than at 45, because your remaining horizon is shorter. The result: you consume your capital rationally, without waste or excessive risk.
This is why VPW is the reference approach in this calculator, and the one I recommend to anyone aiming for a sustainable early retirement.
The Swiss pension system, integrated
One of the distinctive strengths of this calculator is its integration of the Swiss pension system, structured around three pillars:
- 1st pillar (AVS/AHV): the calculator estimates the net present value of your future AVS pension, based on a conservative projection (scale 44) that accounts for career changes and interruptions. This amount directly reduces your FIRE number. If your pension is already being paid, enter it under "Income" rather than in the AVS section.
- 2nd pillar (LPP / occupational pension): your occupational pension assets can be entered as a current or future value depending on your situation. Their impact on the capital target can be significant.
- 3rd pillar (3a and 3b): your pillar 3a savings and other free assets can be entered directly in the "Your accounts" section.
Most FIRE calculators ignore these three pillars, which leads to an overestimation of the capital needed for Swiss residents. A couple contributing regularly to AVS and benefiting from a solid LPP plan can reduce their FIRE number by several hundred thousand francs.
What savings rate do you need to reach financial independence?
Financial independence is often presented as an extreme effort, requiring you to sacrifice 50% or more of your income for a decade. This view is both discouraging and inaccurate.
With a savings rate of around 20%, a solid investment strategy, and accounting for the disappearance of professional expenses after leaving work (commuting, work lunches, professional clothing — often 10 to 30% of net salary), financial independence is achievable within 15 to 20 years. The calculator lets you visualise this directly: compare the "classic allocation", "PP 2.x" and "PFD" scenarios on the projection chart to measure the concrete impact of returns on your FIRE horizon.
Some approaches place greater emphasis on cutting expenses as the primary lever. My view is different: optimising portfolio returns is at least as powerful as budget austerity, with a far greater impact on quality of life. The calculator lets you test both levers and see which one weighs more in your specific situation.
Frequently asked questions
What is the "FIRE number"?
The FIRE number is the total capital you need to cover your lifetime expenses from your portfolio returns alone — without depending on a salary. It is calculated by dividing your net annual expenses by your withdrawal rate. With the VPW method, this rate evolves each year based on your age and your allocation, making the result more personalised than a one-size-fits-all rule.
What is the difference between VPW and the 4% rule?
The 4% rule sets a fixed withdrawal rate based on 30-year US historical data. It is simple but rigid: it can leave you dying rich if you were too cautious, or put you in difficulty if markets disappoint over time. The VPW method adapts: the rate increases progressively with age, while accounting for your portfolio's actual allocation. The result: less wasted capital, less risk of running short.
How much do I need to save each month to reach financial independence?
There is no universal answer, but a savings rate of around 20% is sufficient — provided you invest wisely and account for the disappearance of professional expenses after retirement. Contrary to what you often read, financial independence does not require sacrificing half your income: a solid investment strategy over 15 to 20 years does most of the heavy lifting.
Should I include dividends in my income?
No. Dividends are part of your portfolio's total return — they are already factored into the VPW calculations and the projection charts. Entering them again in the "Income" section would count them twice and underestimate the capital you actually need. Only enter income that is external to your portfolio: rental income, part-time work, pensions already being paid.
Can I use this calculator for a standard retirement (age 63–65)?
Absolutely. The tool is not reserved for early retirement enthusiasts. If you are targeting a retirement at 63 or 65, the VPW method will calculate a withdrawal rate adapted to your remaining life expectancy and your allocation — which remains significantly more accurate than the 4% rule for this situation too.
Sources and data
The calculator parameters are based on the following sources:
- Bogleheads Wiki — VPW
- Federal Social Insurance Office (FSIO) — AVS/AHV reference pensions 2026
- Federal Social Insurance Office (FSIO) — AVS/AHV