Latte Factor Calculator

Enter a Regular Expense and Investment Return

Expense Category


Year Daily Weekly Monthly

How to Use The Latte Factor Calculator

Small daily, weekly and monthly expenses are more costly than you might think. Saving even $5 a day, given enough time, can make you a millionaire. To show you how, we've built The Latte Factor Calculator. The Latte Factor was popularized by David Bach in his book, The Automatic Millionaire. Here's how it works:

Expense Category: Select a regular expense you incure from our drop-down list. Your choice will not affect the calculations. But it does put into perspective the power of saving small amounts of money. There is no need to enter a dollar sign.

Amount: This is the amount of the regular expense you've selected. If you spend $5 a day on a latte, enter $5 here. Note that you don't have to indicate how often you spend this money. The results will do that for you. the rate may be 10.49%. In that case, enter 10.49 in the calculator. There is no need to enter a percentage sign.

Return: Here enter the return you think you'll earn if you invest this money instead of spending it. If you invest in low-cost index funds for the long-term, we recommend 8%.

Results: The results show you how much you'll have accumulated if you invest the amount instead of spending it. We show you the results based on saving that amount daily, monthly, and weekly.

Give the calculator a try and let me know what you think!

Additional Latte Factor Resources

The Latte Factor shows us just how powerful saving even small amounts of money can be over time. Saving even $5 or $10 a day can grow into more than $1 million over time. While it seems impossible at first, that's the power of compounding.

With that in mind, here are some more resources to consider:

In addition to these resources, sign-up for our free weekly newsletter here. And be sure to check out our weekly personal finance podcast!