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

| Type | Portfolio Needed | |---|---| | Full FIRE ($40k expenses) | $1,000,000 | | Barista FIRE ($20k part-time) | $500,000 | | Coast FIRE | Just 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

Ready to run the numbers?

Open Barista FIRE Calculator