Barista FIRE Calculator
Estimate the portfolio target left after dependable annual take-home income covers part of retirement spending.
Use take-home income after payroll deductions. Count only income you have a reasonable basis to expect.
Your inputs stay on this page and are not saved.
- Portfolio-funded spending
- $36,000.00
- Full FIRE comparison
- $1,500,000.00
- Target reduction
- $600,000.00
- Spending covered by income
- 40.0%
Income that covers all current spending does not create permanent financial independence. Test job loss, reduced hours, healthcare changes, taxes, inflation, and future spending.
How the calculation works
Portfolio-funded spending = annual spending minus dependable take-home income, with a minimum of zero. Barista FIRE target = portfolio-funded spending ÷ withdrawal-rate assumption.
This arithmetic assumes the entered income continues. It does not model job availability, schedule changes, taxes, benefit eligibility, healthcare costs, market returns, or retirement length.
Reference: Investor.gov: Managing lifetime income
Barista FIRE Calculator FAQs
What is Barista FIRE?
Barista FIRE is a planning approach where earned income covers part of ongoing spending and investments cover the rest. The job does not have to be in a coffee shop.
Should I enter gross pay or take-home income?
Enter dependable take-home income after payroll deductions because the calculator compares it with spending. Model health premiums and other job-linked costs consistently.
Does part-time income permanently reduce my FIRE number?
Only while that income continues. Also calculate the full FIRE target and a job-loss scenario so the plan does not depend on one employer or schedule.
How should employer health insurance be valued?
Compare employee premiums, deductible, out-of-pocket limit, network, prescriptions, eligibility hours, waiting periods, and the cost of realistic alternatives. Do not count the employer contribution as spendable income.
Does the calculator include taxes on portfolio withdrawals?
No. Enter take-home work income, but separately estimate federal and state tax on withdrawals, gains, conversions, and other income. Increase the spending input if taxes are paid from the portfolio.
What if part-time income covers all spending?
The simple portfolio-funded gap becomes zero, but the household is still dependent on work. Calculate the assets needed if hours, pay, benefits, health, or job availability change.