Habit Cost Calculator
See the yearly cost of a daily habit.
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Results update as you type.
How it works
Small daily purchases seem harmless but add up to surprising sums, and this calculator shows the real cost of a habit over time. You enter the daily cost — a coffee, a snack, an energy drink, a lunch out — and a number of years, and it returns the monthly, yearly, and total cost. The idea, popularized as the latte factor, is that a modest daily expense multiplies into thousands of dollars a year and far more over a lifetime: $5 a day is about $150 a month, $1,825 a year, and over $9,000 in five years. Seeing the total puts small spending in perspective and can reveal painless places to cut back. This is not about giving up everything you enjoy, but about being aware of where money goes and choosing which habits are worth the cost. The savings from trimming a habit can be redirected to goals like an emergency fund, debt payoff, or investing, where, if invested, the amounts would grow substantially thanks to compound interest. Use it for any recurring daily expense to see its annual and long-term impact. You can compare habits by running the calculator for each. Being intentional about small, frequent spending is one of the easiest ways to free up money. Enter the daily cost and years to see the total.
Yearly = daily cost × 365; total = yearly × years
The yearly cost is the daily cost multiplied by 365, and the monthly cost is that divided by 12. Multiplying the yearly cost by the number of years gives the total. Small daily amounts add up to large sums over time, the essence of the latte factor.
Source:Cost arithmetic
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter daily cost.
- 2
Adjust the options
Adjust number of years if they apply — sensible defaults are already set.
- 3
Read your result
Yearly cost updates instantly as you type — no button to press.
Frequently asked questions
How much does a daily habit cost per year?
Multiply the daily cost by 365. A $5-a-day habit costs about $1,825 a year and roughly $150 a month. Over five years that exceeds $9,000. Small, frequent purchases add up far more than most people expect, which is why examining daily spending can reveal significant savings opportunities.
What is the latte factor?
The latte factor is the idea, popularized by author David Bach, that small daily expenses like a coffee add up to large amounts over time and can be redirected to savings or investing. The point is not that coffee is bad, but that being aware of recurring small spending reveals easy ways to build wealth over the years.
Should I give up all my small pleasures?
Not necessarily. The goal is awareness and intention, not deprivation. Some habits are well worth their cost for the enjoyment they bring. The value of this calculator is helping you see which recurring expenses matter to you and which you could cut painlessly, so you can spend deliberately on what you value and save on what you don't.
How much could I save by investing the money instead?
Far more than the raw total, thanks to compound interest. Redirecting $5 a day into investments earning a typical return could grow to tens of thousands of dollars over a couple of decades, well beyond the amounts spent. Cutting a habit and investing the difference is a simple, powerful way to build long-term wealth.
Can I use this for any expense?
Yes. Enter the daily cost of any recurring purchase — coffee, snacks, lunches, rideshares, subscriptions averaged to a daily figure, or anything else — to see its yearly and long-term total. Running it for several habits lets you compare them and identify where your discretionary money actually goes, which is the first step to spending more intentionally.