Barista FIRE Calculator
What Barista FIRE Means
Barista FIRE blends partial financial independence with part-time income. Instead of covering your full annual spending from investments, you plan for a smaller portfolio that covers the gap between your expenses and part-time earnings. This approach can shorten the timeline to leaving a full-time job while still maintaining a safety net.
The key variable is your “gap spending.” If you spend $40,000 per year and expect to earn $15,000 from part-time work, the portfolio only needs to cover $25,000 per year. That lower target reduces the required FI number and can accelerate your timeline to independence.
Core Formula
Let be annual spending, be annual part-time income, and the safe withdrawal rate. The Barista FIRE target is:
If part-time income exceeds spending, the target drops to zero, but in practice you still need emergency savings and a buffer for volatility.
How the Timeline Is Estimated
The calculator uses real (inflation-adjusted) returns to project your portfolio year by year. Each year the balance grows by the real return, then you add your annual contributions. The model stops once the balance exceeds your Barista FIRE target. This gives a practical estimate without overfitting to short-term market volatility.
Because part-time income can change, the results are most useful as a planning baseline. If you expect to increase your part-time earnings or reduce spending later, you can update the inputs to see how the timeline shifts.
Withdrawal Rate Comparison
Using different withdrawal rates changes your Barista FIRE target substantially. The table below illustrates the target portfolio at three common SWRs.
| Safe Withdrawal Rate | Barista FIRE Target |
|---|---|
| 3% | $0 |
| 4% | $0 |
| 5% | $0 |
Assumptions and Limitations
This calculator assumes a steady real return and consistent annual contributions. It does not model taxes, healthcare premiums, or investment fees. It also assumes the part-time income is reliable and sustainable. If your part-time work is seasonal or uncertain, consider using a lower income value or adding a buffer to spending.
Withdrawal rate guidance is based on historical averages and may not hold in all market environments. Retiring early increases the time horizon, which can justify a more conservative withdrawal rate. Run scenarios with lower SWRs to see how sensitive your target is.
Practical Barista FIRE Planning
Most Barista FIRE plans pair a modest portfolio with flexible work. The goal is not necessarily to stop working entirely, but to move into work you enjoy while relying less on earned income. Health insurance is often the biggest constraint in early retirement. Many people choose part-time jobs that offer benefits or budget for private coverage in the spending input.
Another lever is savings rate. By saving aggressively while working full time, you reach the Barista FIRE target faster. Because the target is smaller than full FIRE, the runway can be surprisingly short. However, the trade-off is reliance on ongoing income. If part-time work dries up, your portfolio must cover the gap or you may need to return to full-time work.
Use this calculator to test different combinations of income, spending, and withdrawal rates. Small changes in spending often have a bigger impact than small changes in returns. Tracking your real expenses and testing conservative assumptions will lead to a more resilient plan.