Barista FIRE number: formula and examples

Barista FIRE (semi-retirement) means intentional work income covers part of your spending so your portfolio only funds the gap. The barista number is usually smaller than full FIRE — if the work income is realistic.

The formula

Gap expenses = max(0, annual spending − work income). Barista number = gap expenses ÷ withdrawal rate. At 4%, that is gap × 25.

Example — $20k part-time income

Spend $60,000, earn $20,000 part-time, use 4% SWR. Gap = $40,000. Barista number = $40,000 ÷ 0.04 = $1,000,000. Full FIRE at the same spend would be $1,500,000 — a $500,000 difference.

Example — lower SWR

Same $40,000 gap at 3.5% SWR: barista number ≈ $1,143,000. More conservative withdrawals still need a larger portfolio even when work income helps.

Practical caveats

• Income can be uneven; plan for dry spells.
• Benefits cliffs (healthcare, employer perks) can change the math overnight.
• Self-employment taxes and expenses reduce “take-home” work income.
• Spending sometimes rises when you have more free time.

Use the Barista FIRE calculator to dial income and spending, then compare Coast FIRE if your question is about stopping contributions rather than partial work in retirement.