Barista FIRE Calculator

Let’s look at a simple example.
Assume your expected annual retirement spending is 30,000. With a safe withdrawal rate (SWR) of 4% (as mentioned above), you multiply 30,000 × 25 and get your FIRE number of 750,000.
With this amount invested, you could withdraw about 30,000 per year for up to 30 years — with a high probability of never running out of money.

If you’re pursuing semi-retirement, like we do, here’s what it looks like when following the Barista FIRE strategy:

Before Barista FIRE:
Your portfolio grows through investment returns and monthly savings. This phase focuses on building wealth and reaching your Barista FIRE target.

During Barista FIRE:
Your part-time income covers part of your living expenses, while the rest comes from portfolio withdrawals. This allows your investments to keep compounding, though at a slower pace, as you begin drawing from your portfolio.

After Barista FIRE:
In full retirement, your portfolio eventually covers all living expenses. The calculator projects your portfolio balance based on your chosen withdrawal rate and expected return, helping ensure long-term financial security.

Curious about your personal retirement gap? Use our Retirement Gap Calculator to make sure there’s no hidden hole in your pocket.

Your FIRE Number:
Your FIRE number represents the total amount you need invested so the passive income it generates can pay your expenses indefinitely — without the fear of running out of money. The exact number depends on your withdrawal rate, lifestyle goals, and the inflation rate (see FAQs below).