Barista FIRE Calculator Formula

Understand the math behind the barista fire calculator. Each variable explained with a worked example.

Use the Barista FIRE Calculator

Formulas Used

Barista FIRE Number

barista_fire_number = gap / (withdrawal_rate / 100)

Income Gap

income_gap = gap

Full FIRE Number

savings_vs_full_fire = annual_expenses / (withdrawal_rate / 100)

Variables

Variable	Description	Default
`annual_expenses`	Annual Expenses(USD)	40000
`part_time_income`	Part-Time Annual Income(USD)	20000
`withdrawal_rate`	Withdrawal Rate(%)	4
`gap`	Derived value`= max(annual_expenses - part_time_income, 0)`	calculated

How It Works

Barista FIRE

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

Barista FIRE means leaving your full-time career but working part-time (often for benefits like health insurance) while drawing down a smaller portfolio.

Comparison

TypePortfolio Needed Full FIRE ($40k expenses)$1,000,000 Barista FIRE ($20k part-time)$500,000 Coast FIREJust cover expenses

Worked Example

$40,000 expenses, $20,000 part-time income, 4% withdrawal.

annual_expenses = 40000part_time_income = 20000withdrawal_rate = 4

01Gap = $40,000 - $20,000 = $20,000
02Barista FIRE number = $20,000 / 0.04 = $500,000
03This is half the full FIRE number of $1,000,000

Frequently Asked Questions

What is Barista FIRE?

Barista FIRE means having enough savings to quit your career and work part-time. The name comes from the idea of working at a coffee shop for benefits while withdrawing from savings.

Why work part-time in Barista FIRE?

Part-time work provides income to reduce portfolio withdrawals, often provides health insurance benefits (a major expense before Medicare at 65), and maintains social engagement.

Is Barista FIRE risky?

It carries more risk than full FIRE because your portfolio is smaller. If part-time work becomes unavailable due to health or economic conditions, the portfolio may deplete faster.

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Open Barista FIRE Calculator