What Is Your Daily Habit Really Costing You?
See how much your daily coffee, snack, or subscription would grow if invested instead — with compound interest working in your favour.
Small daily habits have an outsized long-term cost — or opportunity.
$38K
30-year opportunity cost of a $5/day habit invested at 7% annual return
$5/day
the classic latte factor — small daily habits compound dramatically over time
10 yrs
for a single daily habit to cost $18,000+ in lost investment growth
The real cost of small habits
Small amounts, big results
The power of compound interest means that even $3–$5/day invested consistently can grow into tens of thousands of dollars over decades. Time is more important than the amount.
The real cost of convenience
A $6 latte isn't just $6 — it's also the foregone investment return on that money over your remaining working years. The older you start investing, the higher the opportunity cost.
What to do with the savings
Consider automating the equivalent amount into an index fund, Roth IRA, or 401(k) each month. Even $100–$200/month invested from your 20s can result in a meaningful retirement nest egg.
How the Latte Factor Calculator Works
Enter your daily spend amount, expected annual investment return, and number of years. The calculator shows you the future value of investing that money instead, your total actual spending over the period, and the compound growth you would have earned.
The calculation uses the future value of an annuity formula: FV = PMT × ((1 + r)^n − 1) / r, where PMT is annual spending, r is annual return, and n is years.