Barista FIRE calculator

What Barista FIRE means

Barista FIRE is the semi-retirement milestone: you stop full-time work but keep some part-time income to cover part of your expenses, so your portfolio only needs to fund the rest. The name comes from coffee-shop jobs that historically offered health benefits to part-timers - the income, and sometimes the insurance, bridges you to full retirement.

The math

This calculator funds only the gap your part-time work does not cover:

1. Portfolio-funded spending = annual spending − part-time income.
2. Barista FIRE number = that amount ÷ your safe withdrawal rate.

Because of the 25× multiplier behind a 4% withdrawal rate, part-time income is remarkably powerful - each dollar you earn replaces $25 of portfolio.

Worked example

Suppose you spend $60,000 a year and expect $20,000 of part-time income, at a 4% withdrawal rate:

• Full FIRE number: $60,000 ÷ 4% = $1,500,000
• Portfolio-funded spending: $60,000 − $20,000 = $40,000
• Barista FIRE number: $40,000 ÷ 4% = $1,000,000

That $20,000 of part-time income cut the portfolio you need by $500,000 - the power of the 25× rule working in your favor.

Why people choose it

• Leave the grind sooner. A $1M Barista target is reachable years before a $1.5M full-FIRE target.
• Keep benefits and structure. Part-time work can provide health insurance and social connection that full retirement lacks.
• Reduce sequence risk. Earned income early in retirement means smaller withdrawals when a market downturn would hurt most.

How to use the result

Adjust the part-time income to see how dramatically it moves the target. Even a $15,000-$25,000 side income reshapes the math. Be realistic about how long you will keep earning it - the plan should still work if you stop the part-time work later, which is where the full FIRE number comes back in.

Common mistakes

• Assuming part-time income lasts forever; have a plan for when it stops.
• Ignoring health insurance, often the real reason for the “barista” job.
• Forgetting taxes on the part-time income when estimating what it nets you.

To see your full-retirement target, use the FIRE calculator; to find the point where you can stop saving entirely, see the Coast FIRE calculator.