Barista FIRE Calculator

Barista FIRE Calculator

Retire sooner by supplementing your portfolio withdrawls with part-time work.

Expected earnings in semi-retirement.

How This Tool Works

Barista FIRE is a hybrid early retirement strategy where you save enough to quit your high-stress career but continue to work a lower-stress, part-time job to bridge the gap.

  • Logic: Instead of needing $1.2M to retire fully, you might only need $600k because your part-time income covers your daily bills while your portfolio grows.
  • The Gap: We calculate the "income gap" between your spending and your part-time earnings, then find the portfolio size needed to cover that gap using a safe withdrawal rate.
  • Insurance: Many people choose jobs (like "Starbucks Barista") that offer health benefits to part-time workers, solving one of the biggest FIRE challenges.

How to Use (Steps)

  1. Annual Living Expenses: Total cost to maintain your life in semi-retirement.
  2. Part-Time Income: The realistic annual net pay from your "Barista" style job.
  3. Safe Withdrawal Rate: Usually 4% for a standard retirement horizon.
  4. Analyze: See how much smaller your "FIRE Number" becomes with just a little bit of supplemental income.

Example Calculation

Scenario: $40,000 Annual Expenses.

• Full FIRE Need ($40k/4%): $1,000,000.
• Part-Time Income: $15,000.
• Remaining Gap to Cover: $25,000.
• Barista FIRE Number: $25,000 / 4% = $625,000.
• Savings Required: 37.5% Less Capital.

Why This Tool Is Accurate

This calculator highlights the massive leverage of part-time income. Because of the "Rule of 25," every $1 you earn at a part-time job replaces the need for $25 in your investment portfolio. This tool helps you visualize exactly how much sooner you can exit the corporate world.

Limitations & Disclaimer

Part-time work is still work. If you lose your part-time job and can't find another, your portfolio may be insufficient to cover the full spending gap. Disclaimer: This model assumes your part-time income keeps pace with inflation.

Frequently Asked Questions

Does Barista FIRE include health insurance?

The term popularized the idea of working at a company that offers health benefits to part-timers. If your part-time job doesn't provide insurance, you must include the cost of private insurance in your total "Annual Expenses" field.

Is this a permanent state?

It can be! However, many people use Barista FIRE as a transition. Over time, your portfolio may grow large enough that you eventually hit "Full FIRE" and can drop the part-time work as well.

How do taxes work in Barista FIRE?

Since your total income (withdrawals + part-time pay) is often quite low, you may find yourself in very low tax brackets, potentially paying 0% on long-term capital gains. Consult a tax professional for your specific bracket.