See exactly what your daily habits cost — per year, or over the long term including what that money could have grown to if invested instead.
A $6 daily coffee doesn't feel like a big deal — until you realize it's $2,190 a year, and $43,000 over 20 years if that money had been invested instead. The "latte factor," a term coined by financial author David Bach, refers to the small recurring expenses that silently drain thousands of dollars over time. This calculator goes beyond just showing what you spend — it shows the opportunity cost, meaning what that money could have grown to in an investment account. Add multiple habits like takeout, streaming subscriptions, or gym classes to see your full picture. Some habits are absolutely worth it. This tool just makes sure you're choosing them consciously.
The annual cost mode is perfect for people who just want a quick honest look at what they're spending without any investment projections. Switch to long-term projection mode to see the full compound growth picture — how daily habits transform into five, six, or even seven-figure opportunity costs over 20 to 30 years. Use the investment return rate field to adjust for conservative or optimistic market assumptions. The default 7% reflects the historical average annual return of a broad US stock market index fund.
This calculator is most powerful when you add all your habits together rather than looking at each one in isolation. Most people find their combined daily habit spend is significantly higher than they expected — often $300 to $600 per month across coffee, takeout, subscriptions, and convenience purchases. Seeing the aggregate number — and what it could have grown to — is often the thing that prompts a real conversation about which habits are genuinely worth keeping and which ones are just autopilot spending.
★ Opportunity cost = what money could have grown to, compounded monthly at the rate specified. Not financial advice — some habits are worth every penny.
The latte factor is a personal finance concept coined by author David Bach referring to small recurring daily expenses — like a daily coffee — that add up to significant amounts over time. The idea is not that you should never buy coffee but that you should be conscious of what recurring small habits actually cost annually and over decades, especially compared to what the money could grow to if invested.
The default 7% reflects the historical average annual inflation-adjusted return of a broad US stock market index fund over long periods. Use 5% for a conservative estimate, 7% for a moderate estimate, or 10% for an optimistic one. The actual return will vary year to year — this calculator shows a long-term average projection, not a guaranteed outcome.
Not necessarily. The point of this calculator is awareness, not deprivation. Some habits are absolutely worth their cost — the goal is to make the choice consciously with the real numbers in front of you. If you value your daily coffee at $6 and it brings genuine enjoyment, that can be a reasonable choice. This calculator just makes the true long-term cost visible.
Compound interest means you earn returns on your returns — your money grows exponentially rather than linearly over time. A $6 daily habit invested at 7% grows to $13,849 after 5 years, $31,696 after 10 years, and $86,264 after 20 years. The longer the time horizon, the more dramatic the compounding effect becomes.
Yes — use the Add Another Habit button to include as many daily, weekly, or monthly habits as you want. The calculator will show you the combined annual cost and combined long-term investment projection across all habits at once, giving you a complete picture of your total recurring discretionary spending.