Latte factor calculator, in hindsight

What if I'd made my coffee at home instead of buying it?

Pick the year you'd have started. This replays real coffee prices, and the stock market growing what you saved, from then to the latest month.

Where
Money saved went
Year you'd have started making it at home
Your coffee
£AVG
£AVG

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What the money saved by making coffee at home is worth, against the money saved alone. Touch the chart to scrub.

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How it played out

Where the money went

The same coffees on both paths; making them at home puts the difference away each month.

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How this works

How this latte factor calculator works

The latte factor is the idea that a small daily spend, like a coffee on the way to work, adds up to a lot once the money is invested instead. This calculator replays it with real prices. Pick the year you'd have started, any January from 2000 to 2025, and how many coffees a week. Each month it prices the coffees bought and made at home, puts the difference away, and follows it to the latest month, invested in the S&P 500 with dividends or held in savings at the real rates of the day.

Both coffees start at a price for January of the year you pick, and you can type your own over either. From then on, a bought coffee rises with the official price index for eating out and one made at home with the price of coffee from the shops, month by month, so a £2 coffee in 2015 costs what that coffee really costs now. It counts 52 weeks a year.

In the UK, a bought coffee is the average price of a cup of coffee in a café or restaurant that ONS collects for inflation, and one made at home is 2g of instant coffee and a splash of semi-skimmed milk at ONS shop prices. In the US, no official source publishes the average price of a coffee bought out, so the bought coffee starts at an example of $5 in 2026; type in what yours costs. One made at home is 10g of ground coffee and an ounce of whole milk at BLS average prices. Investing is tax-free, as in an ISA or a Roth IRA, with no fees.

Worked example

These use the calculator's starting figures for one UK case and one US case, and are refreshed when the data updates.

Had you made your 5 coffees a week at home from January 2015 and invested the difference, by August 2026 you'd have £18,779 from £7,785 saved on coffee.

Had you made your 5 coffees a week at home from January 2015 and invested the difference, by August 2026 you'd have $28,579 from $11,627 saved on coffee.

Where the numbers come from

  • UK: coffee prices from ONS consumer price quotes for January 2026 (items 220121, 213003 and 211710), carried to other months by the ONS consumer price indices for restaurants and cafés (D7EW) and coffee, tea and cocoa (D7DE). Savings rates and exchange rates from the Bank of England; stock market: S&P 500 with dividends, from Robert J. Shiller's data. Contains ONS data © Crown copyright, licensed under the Open Government Licence v3.0.
  • US: coffee made at home from BLS average prices for ground coffee and whole milk, month by month (where BLS left the coffee price out, the BLS coffee price index fills the gap). The bought coffee is an example of $5 in January 2026, carried to other months by the BLS consumer price index for food away from home, via FRED (October 2025, which BLS did not publish, is the average of the months either side). Treasury bill yields from the Federal Reserve; stock market: S&P 500 with dividends, from Robert J. Shiller's data.

Questions

How much would I save by making coffee at home?

At January 2026 prices, a UK café coffee averaged £3.36 against about 12p for an instant coffee with milk made at home: about £3.25 a cup, or roughly £845 a year at one coffee each workday. Pick a start year above to see what that added up to, and what it grew to invested.

How much do people spend on coffee a year?

One bought coffee each workday, 5 a week for 52 weeks, is 260 coffees. At the UK café average of £3.36 that is about £875 a year; at $5 a cup in the US it is $1,300. Two a day, every day, is 728 coffees: about £2,450 or $3,640 a year.

What is the latte factor?

A phrase from the author David Bach for small, regular spending that would add up to a fortune if it were invested instead. Critics point out that a coffee is rarely what stands between someone and wealth; housing, cars and pay matter more. This calculator shows the real figure for coffee, so you can judge for yourself.

What if I had invested my coffee money?

That is the "Invested" setting: each month's saving goes into the S&P 500 with dividends reinvested, converted to pounds in the UK. Switch to "In savings" to see it earn real savings rates instead; the chart shows the money saved on its own for comparison.

What if I use pods or a coffee machine?

Type what a cup costs you as the coffee made at home. ONS priced coffee pods at £4.79 for a pack of 8 to 16 in January 2026, roughly 30p to 60p a pod before milk. The calculator carries your price back to your start year with the price of coffee.