Barista FIRE Calculator
See how much smaller a nest egg you need if part-time work covers some expenses (Barista FIRE), versus full financial independence. Runs in your browser.
Barista FIRE target
- Full FIRE nest egg
- $1,250,000
- Part-time income covers
- $20,000/yr
- Portfolio must cover
- $30,000/yr
- Barista FIRE nest egg
- $750,000
- Reduction vs full FIRE
- $500,000
Barista FIRE = semi-retiring with part-time work (often for health benefits) covering part of your expenses, so your portfolio only needs to fund the rest. Nest egg = (expenses − part-time income) ÷ withdrawal rate. The part-time income dramatically lowers the portfolio you need. Excludes taxes/benefits value. Informational, not financial advice.
About this tool
Barista FIRE is a semi-retirement strategy: you leave your demanding career but keep some part-time or low-stress work — the name comes from coffee-shop jobs that famously offer health benefits — so your portfolio only has to cover the gap between your expenses and that part-time income. This calculator shows how powerful that is. It computes your full FIRE nest egg (expenses ÷ withdrawal rate), then the Barista FIRE nest egg based on only the expenses your portfolio must cover after part-time income, and the reduction between them. Because the target scales with the spending your portfolio funds, even modest part-time earnings can shrink the required nest egg by hundreds of thousands of dollars and let you 'retire' from full-time work years earlier. The strategy also often secures employer health insurance, a major consideration in the US. The model excludes taxes and the monetary value of benefits, and assumes the part-time income continues — if it stops, you would need closer to the full FIRE number. It is informational, not financial advice. Everything runs in your browser.
How to use it
- Enter your total annual expenses.
- Enter the annual income you'd earn from part-time work.
- Set a safe withdrawal rate (4% standard).
- See the reduced Barista FIRE nest egg and how much it saves vs full FIRE.
Frequently asked questions
- What is Barista FIRE?
- Semi-retirement where part-time or low-stress work covers part of your expenses (and often provides health benefits), so your investment portfolio only needs to fund the remainder. You quit the career grind sooner with a smaller nest egg than full FIRE requires.
- How is the Barista FIRE number calculated?
- Take the expenses your portfolio must cover — total expenses minus part-time income — and divide by your withdrawal rate. At 4%, that is 25× the gap. If you spend $50k and earn $20k part-time, the portfolio covers $30k, needing $750k instead of $1.25M.
- Why does part-time income reduce the nest egg so much?
- Because the target is a multiple of the spending your portfolio funds. Each $1,000 of part-time income removes $25,000 (at 4%) from the required nest egg — so even a modest job can cut the target dramatically and pull your semi-retirement date much earlier.
- What about health insurance?
- A major draw of Barista FIRE in the US: many part-time jobs (and some employers) provide health coverage, removing one of the biggest pre-Medicare retirement expenses. The monetary value of benefits is not modeled here but can be substantial.
- What if the part-time work stops?
- Then your portfolio must cover full expenses, closer to the full FIRE number. Barista FIRE assumes ongoing part-time income, so build in a buffer or a plan for if you cannot or do not want to keep working.
- Is this financial advice?
- No. It is an informational estimate excluding taxes and benefit value. Consult a financial advisor for planning.