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Latte factor calculator
What a small habit, like a coffee on the way to work, adds up to over a year and over several years.
Short answer: multiply the cost of one purchase by how many times a week you buy it and by 52 to get the yearly cost. Multiply by the number of years to see the long-term total. If you saved the money instead, growth on top makes the total larger still.
Small spending, big totals
A purchase you make on autopilot never feels expensive, because you only ever see one at a time. Turning it into a yearly figure lets you decide whether it is worth it, instead of letting the habit decide. The answer can be yes.
Cut the habit, not the joy
- Pick one habit. The one you would miss least.
- Halve it, do not ban it. Three coffees a week instead of five is easier to keep than none.
- Move the difference. Put what you saved toward a goal in the savings goal calculator, so it does not vanish into other spending.
- Log it for a week. Seeing each purchase as you make it is often enough to change the habit.
Frequently asked questions
What is the latte factor?
The latte factor is the idea that small, regular spending, like a coffee on the way to work, adds up to a large sum over years. The term was popularised by author David Bach.
Should I stop buying coffee?
Not necessarily. The point is to choose on purpose. If the coffee is worth it to you, keep it and cut something you care about less. If it is a habit you would not miss, the calculator shows what it is worth to stop.
How is the growth figure calculated?
The calculator adds the money saved each month and grows the balance once a month at the yearly rate you enter divided by twelve. It is an estimate: real returns go up and down, and savings accounts and investments differ.
What other habits work with this calculator?
Anything small and regular: lunch out, takeaway, energy drinks, snacks, ride-hailing, cigarettes, in-game purchases.
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