Part Time Income Offset
Calculator

It estimates how much part-time or 'bridge' income during early retirement can reduce the amount you need to withdraw from your portfolio, and correspondingly how many additional years your savings could last or how many fewer years of full-time work you might need before retiring. This underpins strategies sometimes called 'Barista FIRE.'

Because reducing withdrawals in the early retirement years is exactly when sequence-of-returns risk is highest, so even a modest amount of part-time income that reduces withdrawals during that vulnerable period can meaningfully extend how long the whole portfolio lasts, beyond just the raw dollar amount offset.

Both — less money withdrawn each year means more principal remains invested and compounding, so the benefit compounds over the years the part-time income continues, not just in the years it's earned.

The calculation typically assumes withdrawals return to their full, unoffset amount once part-time income ends, so this approach works best when the part-time period is expected to bridge into a later, more permanent income source (like a pension or Social Security) or into full retirement with a now-smaller required withdrawal.

Ideally yes — part-time earnings are typically taxed as ordinary income, so the actual offset to withdrawals should be based on after-tax part-time income, not the gross wage, or the calculator will overstate how much withdrawal reduction the work actually provides.