Barista FIRE Calculator

Use this calculator to estimate a Barista FIRE number when part-time income covers part of retirement expenses.

What this calculator does

The Barista FIRE calculator reduces the portfolio target by accounting for part-time income. It estimates the portfolio needed to cover only the expense gap.

It uses:

• annual expenses
• annual part-time income
• withdrawal rate
• current savings and annual contribution

Barista FIRE Formula

Barista FIRE Number = (Annual Expenses - Part-Time Income) ÷ Withdrawal Rate

Where:

• Annual Expenses = total yearly spending
• Part-Time Income = income earned after leaving full-time work
• Withdrawal Rate = portfolio withdrawal percentage
• Barista FIRE Number = portfolio needed for the gap

Example calculation

If:

• Annual expenses = 50,000
• Part-time income = 20,000
• Withdrawal rate = 4%
• Expense gap = 30,000

Then:

• Barista FIRE number = 30,000 ÷ 0.04
• Barista FIRE number = 750,000
• Full FIRE number = 1,250,000
• Savings vs full FIRE = 500,000

The Barista FIRE number is 750,000.

What is Barista FIRE?

Barista FIRE is a financial independence approach where part-time or lower-stress work covers part of living expenses. The portfolio only needs to support the remaining gap.

Why Barista FIRE matters

• lowers the portfolio target
• creates flexibility before full retirement
• keeps some earned income in the plan
• may reduce pressure on investments

When to use this calculator

• planning semi-retirement
• estimating a lower FIRE target
• testing part-time income scenarios
• comparing Barista FIRE with full FIRE

Common mistakes

• assuming part-time income is guaranteed
• ignoring taxes on earned income
• underestimating healthcare costs
• choosing work that is not sustainable

Barista FIRE vs FIRE

FIRE assumes the portfolio covers all expenses. Barista FIRE assumes part-time income covers part of expenses.

That income reduces the portfolio needed.

FAQs

What is Barista FIRE?

Barista FIRE is semi-retirement where part-time income covers part of expenses and investments cover the rest.

How do you calculate Barista FIRE?

Subtract part-time income from annual expenses, then divide the gap by the withdrawal rate.

What is a good Barista FIRE number?

A good number covers the expense gap with conservative income and withdrawal assumptions.

What is the difference between Barista FIRE and FIRE?

FIRE relies fully on investments. Barista FIRE combines investments with part-time income.