Visual Capitalist: The Opportunity Cost Of A Daily Starbucks Latte
Key Takeaways
- Buying a grande latte at Starbucks every day for a year (365 days) would amount to roughly $2,095.
- This graphic shows what you would have if you had invested that amount for one year instead.
A daily Starbucks habit might feel like a small indulgence, but over time, those dollars can add up. This infographic explores the opportunity cost of a daily Starbucks latte over the course of one year (2024).
Data was sourced from Starbucks-menus.com (latte cost) and CNBC (stock returns). We used Palantir Technologies (PLTR) and Nvidia (NVDA) as examples because they were two of the best performing S&P 500 stocks in 2024.
| Scenario | Return | Amount After 1 Year | Gain vs. Daily Latte |
|---|---|---|---|
| Daily Starbucks Latte ($5.74 x 365) | — | $2,095 | — |
| High-Yield Savings Account | 4% | $2,179 | $84 |
| S&P 500 Investment | 24.2% | $2,603 | $508 |
| Nvidia Investment | 171.2% | $5,682 | $3,587 |
| Palantir Investment | 340.5% | $9,229 | $7,134
|
The Power of Equities
At $5.74 per cup, a daily Starbucks latte costs $2,095 per year. Had you placed that amount in a high-yield savings account with a 4% return, you’d end up with $2,179 after one year—a modest $84 gain.
Larger gains could be realized if this money had been invested in equities. In 2024, the S&P 500 grew by 24.2%, while top-performing companies like Nvidia grew by 171.2%. However, it’s important to remember that equity returns fluctuate significantly from year to year, and they aren’t always positive.
This latte example is meant to illustrate a possibility, not a guarantee. It also overlooks the intrinsic value of a latte like the comfort, routine, or small joy it brings to daily life—all things that can’t be measured in dollars.
SOURCE: https://www.visualcapitalist.com/infographic-the-opportunity-cost-of-a-daily-starbucks-latte/