Latte Factor Calculator

The latte factor is a useful illustration of compound interest, but context matters. A daily $6.50 coffee costs $2,373/year — meaningful, but not life-changing unless invested and left untouched for decades. The bigger wins come from housing, cars, and salary negotiations.

The 'latte factor' is a concept coined by author David Bach — the idea that small, daily discretionary purchases (like a $6 coffee) add up to large amounts over time, especially if invested. It's a metaphor for mindless spending rather than a specific indictment of coffee.

Not necessarily — life satisfaction matters. But being intentional about recurring small expenses is valuable. If your daily coffee brings genuine joy and you're meeting your savings goals, keep buying it.