"Latte Factor" Investment Calculator
See how much wealth you could build by investing your daily habits.
"Latte Factor" Investment Calculator
The "Latte Factor" is a behavioral finance concept. It calculates how much wealth you could build over decades by investing the small amounts of money you spend every day on things like coffee, snacks, or subscriptions.
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Historically, the S&P 500 returns ~7-10% annually.
Total Future Wealth
$185,660
After 30 years of compounding at 7.0%
Money Saved
$54,786
Interest Earned
+$130,874
Instead of spending $152 roughly every month, investing it earns you $130,874 in free compound interest over this period.
What is the Latte Factor?
The "Latte Factor" is a behavioral finance concept popularized by author David Bach. It illustrates the incredible power of compound interest by showing how small, seemingly insignificant daily expenses (like a $5 latte) can grow into hundreds of thousands of dollars if invested in the stock market over a long period.