Barista FIRE Calculator

Barista FIRE is a semi-retirement strategy where you leave your full-time career but continue working part-time — just enough to cover basic living expenses while your investment portfolio grows undisturbed. The name comes from the popular example of working a part-time café job for income (and health benefits) while the portfolio compounds in the background.

Core formulas:

Annual Income Gap = Annual Expenses − Part-Time Income

Barista FIRE Number = Annual Income Gap × 25

Full FIRE Number = Annual Expenses × 25

Savings Required vs. Full FIRE = Full FIRE Number − Barista FIRE Number

The multiplier of 25 comes from the 4% Safe Withdrawal Rate — research showing a diversified portfolio can sustain 4% annual withdrawals indefinitely. Dividing 1 by 4% = 25.

Variable definitions:

• Annual Expenses: your total yearly spending, including housing, food, transport, healthcare, and fun
• Part-Time Income: reliable income from a flexible low-stress job
• Income Gap: the portion your portfolio must cover each year
• FIRE Number: the portfolio size needed to fund the gap indefinitely at 4% withdrawal

Worked example: Annual expenses: $52,000 Part-time barista job income: $18,000 Annual gap = $52,000 − $18,000 = $34,000 Barista FIRE number = $34,000 × 25 = $850,000 Full FIRE number = $52,000 × 25 = $1,300,000

By taking a part-time job, you need $450,000 less in the portfolio — which could represent 5–10 fewer years of full-time work.

FIRE strategy comparison:

Key risk factor: Part-time income is not guaranteed. Barista FIRE portfolios should ideally be able to sustain a 3–5% withdrawal rate alone if the part-time job is unavailable — as a safety buffer.