How Barista FIRE is calculated
The gap
Each year your portfolio covers spending plus health insurance minus what the part-time job pays. That gap is what you withdraw.
The finish line
When part-time work ends, the portfolio has to hold your full FIRE number: spending divided by the withdrawal rate.
Why two numbers
The rule of thumb divides the gap by 4%. It ignores the switch to full retirement, so "Needed today" is the one to plan with.
Limits of this calculator
- Health insurance drops off at 65, when Medicare starts. If you expect ACA subsidies, enter your premium after them.
- Part-time pay is flat in today's dollars and stops at the age you choose.
- Social Security is not included. If you count on it, lower spending for the years after it starts.
What next
Questions
Why is it called Barista FIRE?
The name comes from people taking jobs like barista shifts at Starbucks, which offer health benefits to part-time staff. Any part-time or freelance work counts.
Is Barista FIRE the same as Coast FIRE?
No. Coast FIRE means you stop saving but still earn all you spend. Barista FIRE means you start withdrawing now and part-time income covers the rest.
How much part-time income do I need?
Lower the part-time income until the verdict turns red. The last amount where it stays green is your minimum.