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Latte Effect savings and retirement calculator

iPhone / iPad
  • Utilities
  • Finance
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How much is that cup of premium coffee really worth? Are you short-changing your retirement?

Originally coined by financial columnist and author David Bach, "The Latte Effect" (sometimes called the "Starbucks Effect") refers to the dent in your retirement savings due to small but recurring avoidable purchases, like premium coffee, take-out lunches, and the like.

How much extra could you save if you skipped that morning latte or muffin, or brought a bag lunch to work? The results may surprise you!

The Latte Effect is a savings calculator that can tell you what you're passing up. It projects the compounded savings for a recurring investment over a period of time you choose. By default, it shows how much you could save by eliminating a purchase made each weekday, over 5 years, using the long-term return for the DOW Industrial Average and the long-term average inflation rate in the United States. All settings can be changed.

The Latte Effect makes a good motivational and budgeting tool, but because it is a general-purpose investment calculator, it can also be used to project the future value of recurring contributions to a retirement account such as an IRA, Roth IRA, 401k or RRSP, or to an education savings account such as a 529, Coverdell ESA, or education IRA.

The Latte Effect can calculate the savings for one-time, daily, weekday, weekly, monthly, quarterly or yearly contributions, over a configurable period of time. You can include the effects of inflation or disable this feature. The Latte Effect automatically adjusts itself to the currency for your locale; it is not US-dollar-specific.


✔ Pleasant, efficient interface
✔ Projects savings from a one-time, weekday, daily, weekly, monthly, quarterly or annual contribution
✔ Include or ignore the effects of inflation
✔ Configurable rate of return and projection period
✔ Adjusts to your currency

Niftybrick Software is an independent artisan software studio. We take your feedback and satisfaction seriously. Please write to us at with any questions or suggestions.