About the Barista FIRE Calculator
Barista FIRE is a form of semi-retirement: instead of saving enough to cover every expense from investments, you build a portfolio that covers the gap between your spending and what a relaxed part-time job pays. This calculator works out that barista FIRE number, compares it with the full FIRE number, and estimates how long it will take to get there from your current savings.
It suits people who would happily keep working a few days a week — often for the income, the routine or the health insurance — but want to leave full-time work much sooner. Enter your yearly spending, the take-home pay you expect from part-time work, a safe withdrawal rate, your current portfolio and how much you save each year.
Use real (after-inflation) returns so every figure is in today’s money. Savings are added at the end of each year and the portfolio compounds annually. The 4% withdrawal rate is a common starting point from historical US studies of 30-year retirements; early retirees with longer horizons often choose 3.25%–3.75% for extra safety.
With the default inputs, the barista fire number is $875,000.00. Change any value above to recalculate instantly.
How to use the barista fire calculator
- 1Enter what you expect to spend each year once you go part-time.
- 2Enter the after-tax income you expect from part-time work.
- 3Choose a safe withdrawal rate — 4% is common, lower for long retirements.
- 4Enter your current investments, yearly savings and a real return.
- 5Compare your barista FIRE number and timeline with full FIRE.
Formula and method
The barista FIRE number is the portfolio whose safe withdrawal covers the gap between your spending E and your part-time income I: (E − I) divided by the withdrawal rate w. With a 4% rate this is 25 times the yearly gap. The full FIRE number is spending alone divided by w.
The time to reach a target T solves the future-value equation for a starting balance B growing at real return r with savings s added at the end of each year: B(1 + r)^n + s[(1 + r)^n − 1]/r = T. With a 0% return it is simply (T − B) ÷ s. Results are fractional years and in today’s money because the return is after inflation.
- E
- Yearly spending
- I
- Yearly part-time income after tax
- w
- Safe withdrawal rate
- B
- Current portfolio
- s
- Yearly savings
- r
- Real annual return
Worked examples
$60k spending, $25k part-time income
The portfolio must cover $60,000 − $25,000 = $35,000 a year, so the barista number is $35,000 ÷ 4% = $875,000, versus $1.5 million for full FIRE. Starting from $200,000 and saving $30,000 a year at a 5% real return, you reach $875,000 in about 12.5 years, against about 19.8 years for full FIRE — semi-retirement at roughly 44.5 instead of 51.8.
Higher part-time income at a 3.5% withdrawal rate
A $20,000 gap at 3.5% needs $571,429. From $400,000, saving $20,000 a year at 4% real, that takes about 4.4 years, so semi-retirement starts around age 44.4. Full FIRE at $1.43 million would take far longer.
Frequently asked questions
What is Barista FIRE?+
Barista FIRE means leaving full-time work once your investments can cover part of your living costs, and earning the rest from enjoyable part-time work. The name comes from the idea of working at a coffee shop partly for benefits such as health insurance, but any flexible job counts.
How is Barista FIRE different from Coast FIRE?+
In Coast FIRE you stop saving because your existing portfolio will grow to a full FIRE number by traditional retirement age, but you still work to pay all current expenses. In Barista FIRE you start withdrawing from the portfolio now, and part-time income only needs to cover the gap.
What withdrawal rate should I use?+
The 4% rule comes from historical studies of US stock and bond portfolios over 30-year periods. Barista FIRE retirees may draw for 40 years or more, so many use 3.25%–3.75%. Because part-time income reduces withdrawals, you also have flexibility to work more in bad markets.
Should the part-time income be before or after tax?+
Use after-tax income, because your spending figure is what you actually pay out. Remember that withdrawals from pre-tax retirement accounts are also taxed, so include an allowance for that tax in your spending if most of your money is in traditional accounts.
What if I need health insurance in the US?+
Many people choose part-time jobs with employer health coverage for exactly this reason. Otherwise, include the cost of an ACA marketplace plan in your spending; with lower income in semi-retirement you may qualify for premium tax credits.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.