How the calculator works
- Your FI number is the portfolio you need at retirement. It is set by your spending and withdrawal strategy and grows with inflation up to your retirement date.
- The gap is your spending minus your part-time income. From the switch until retirement, your portfolio pays it every month, rising with inflation.
- The barista line is what you need invested in a given month to pay that gap and still reach your FI number at retirement: the FI number discounted back with your market gain, plus the value of the gaps still to come. Its value today is your barista number.
- Your savings plan runs month by month until your portfolio meets the barista line. From that month you can switch to part-time work. From retirement, the chart shows how your portfolio develops while you withdraw.
This is a projection, not financial advice. It assumes a constant market gain and inflation, no taxes or fees, and part-time income that rises with inflation and stops at retirement. Part-time income above your spending is not invested. Pensions are not included. Check your plan regularly.
Barista FIRE vs Coast FIRE and FIRE
All three aim at financial independence by retirement. They differ in when you leave full-time work and what your portfolio does until then.
| Type | Leave full-time work | Portfolio before retirement | Suits you if |
|---|---|---|---|
| Barista FIRE | When you reach your barista number | Pays the gap your part-time income leaves | You want out of full-time work early and are happy to keep some income |
| Coast FIRE → | At a normal retirement age | Left alone, grows on its own | You like your work but want to stop saving |
| FIRE → | When you reach your FI number | Pays all your costs | You want to stop working as early as possible |
Example: how part-time income changes the barista number
The same plan for each row: age 35, $2,000 a month in spending, retirement at 65 with preserve capital, an average market gain of 8%, inflation of 2%, $50,000 invested today and $500 saved per month.
| Part-time income per month | Barista number today | Go part-time at |
|---|---|---|
| $0 | $421,456 | age 57 |
| $500 | $335,033 | age 56 |
| $1,000 | $248,610 | age 53 |
| $1,500 | $162,186 | age 49 |
| $2,000 | $75,763 | age 40 |
The more your part-time job pays, the earlier you can switch. Once it covers all your spending, the barista number is the same as the Coast FIRE number.
Frequently asked questions
What is Barista FIRE?
Barista FIRE means you leave full-time work once your portfolio can pay the part of your costs a part-time job doesn't cover, and still grow into your full FI number by retirement. The name comes from working at a coffee shop for some income, but any part-time or freelance work counts.
What is a Barista FIRE number?
It is what you need invested to switch to part-time work today. It has two parts: your FI number discounted back to today with your market gain (the Coast FIRE number), plus the value today of the monthly gaps your portfolio pays until retirement.
What is the difference between Barista FIRE and Coast FIRE?
With Coast FIRE your income still covers all your costs until retirement and the portfolio is left alone. With Barista FIRE your portfolio already pays part of your costs, so you need more invested but can cut back on work. If your part-time income covers everything, both give the same number. Compare it with the Coast FIRE calculator.
How much part-time income do I need?
Any amount helps. Every dollar a month you earn part-time is a dollar your portfolio doesn't have to pay, which lowers your barista number and moves your switch date earlier. Try a few amounts in the calculator to see the trade-off.
What happens at retirement?
The calculator assumes your part-time income stops and your portfolio pays all your spending from then on, with the withdrawal strategy you picked. A state or company pension is not included, so if you will get one, the result is on the safe side.
Is my data stored?
Not on our servers. The calculator runs in your browser. Your inputs are kept in the page address, so you can bookmark or share your plan, and in your browser's local storage, so the other calculators open with the same plan. Nothing is sent to us.
Is this financial advice?
No. It is a projection based on the assumptions you enter. Real returns vary from year to year and are not guaranteed.
