Latte Factor Savings Calculator

Work out latte factor savings instantly with clear inputs, formula shown and shareable results.

About Latte Factor Savings Calculator

The daily amount becomes a monthly contribution of 30.44 times that figure, compounded as an ordinary annuity at the monthly equivalent of the annual return. Over twenty years growth typically exceeds the contributions themselves, which is the entire argument behind the latte factor idea.

Formula

Future value

FV = monthly contribution x ((1 + monthly rate)^months - 1) / monthly rate

Worked example

With the default values below, Latte Factor Savings Calculator returns Value after investing instead of $69,516.62. Change any input above and every figure here is recalculated in your browser.

Inputs used

Small daily spendminimum 0.01: 4.5
Years to investminimum 0.1: 20
Annual returnaccepts 0–30 %: 7 %

Results

Value after investing instead: $69,516.62
Total you would have contributed: $32,872.50
Investment growth: $36,644.12
Share of the total that is growth: 52.71%

Step by step

1Values used
2Future value
3Value after investing instead= 69,516.62
4Total you would have contributed= 32,872.50
5Investment growth= 36,644.12
6Share of the total that is growth= 52.71

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Latte Factor Savings figure worked out?

FV = monthly contribution x ((1 + monthly rate)^months - 1) / monthly rate. The daily amount becomes a monthly contribution of 30.44 times that figure, compounded as an ordinary annuity at the monthly equivalent of the annual return.

Why does this matter?

Over twenty years growth typically exceeds the contributions themselves, which is the entire argument behind the latte factor idea.

What do I need to enter?

Enter small daily spend, years to invest, annual return. The defaults shown are a realistic worked example — swap in your own figures to get a result you can use.