RETIREMENT CHANNEL
Barista FIRE Calculator
Calculate the nest egg needed to transition to a stress-free part-time job.
Calculator Variables
Calculation Overview
Calculate the retirement portfolio needed to retire early and work part-time (Barista FIRE).
Mathematical Model & Formula
Barista Target = (Expenses - Part-Time Income) / SWR
Subtracts passive earnings from overall expenses to compute the smaller nest egg required to fund the remaining deficit.
Variables Defined:
- Expenses: Total annual living expenses
- Part-Time Income: Expected part-time wages
- SWR: Safe withdrawal rate
Worked Example Scenario
Scenario: Expenses = $50,000, part-time earnings = $20,000, SWR = 4%.
- Gap = $50,000 - $20,000 = $30,000
- Target = $30,000 / 0.04 = $750,000
Result: $750,000 portfolio size required.
Frequently Asked Questions
What is Barista FIRE?
Retiring early from your primary career but continuing to work a low-stress part-time job to cover a portion of living expenses.