How much does daily coffee cost per year in Australia?

At a typical Australian cafe price of around $5.50 a cup, buying coffee twice a day (about 10 cups a week) costs roughly $55 a week, or about $2,860 a year. Premium drinks, larger sizes or adding a daily snack push that figure higher. Over 10 years that's more than $28,000 spent on coffee alone.

What is the latte factor?

The 'latte factor' is the idea that small, repeated everyday purchases — like a daily coffee — quietly add up to a large amount over time, and could grow even larger if that money were invested instead. Popularised by author David Bach, it's a way to show how minor habits compound. It's not a rule to never buy coffee, just a reminder to be aware of what small spends really cost.

Should I give up coffee to save money?

Not necessarily. The point of the latte factor is awareness, not deprivation. If your daily coffee genuinely adds value to your day, it can be money well spent. But if you'd barely miss a cup or two, trimming your habit slightly — or making some at home — is an easy, painless saving you can redirect to a goal or investment.

Coffee Spending Calculator

See what your daily coffee or takeaway habit costs per year — and what the same money could grow to if invested instead. The 'latte factor', costed for Australia.

Last verified: 5 May 2026

What does a daily coffee really cost?

More than the price on the menu. Small, repeated spends compound — and the same money invested could grow into a meaningful sum. It isn't about never buying coffee, it's about awareness. Source: ASIC MoneySmart.

Worked example. 10 cups a week at $5.50 = about $2,860/year. Invested at 8% instead, that's roughly $43,600 after 10 years.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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What does a daily coffee really cost?

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