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Australia is officially a ‘coffee nation’, consuming over six billion cups of coffee a year — that’s up to 1.5 billion litres of the beloved beverage caffeinating our systems!
However, in a cost-of-living crisis, every dollar spent starts to pinch. So how much are you really spending on that takeaway coffee?
How much are we actually spending on coffee?
According to the Australia Coffee Price Index, the national average for a flat white (two shots) is $5.01.
If you’re a chronic coffee buyer who indulges in a flat white every day, you could be spending a whopping $1,825 and above every year.
Compare that to the average price of making your coffee at home: roughly $0.99 for coffee grounds from a French press, or just $0.57 for instant (including electricity costs).
Over a year, that’s a total of $208 to $361 for one cup a day, or up to $1,600 less than a takeaway coffee.
The real cost of a coffee habit
If you ditch the $5 daily coffee and instead use that $1,825 to make extra repayments on your home loan each year, you could save over $7,600 on interest over 30 years*.
Other essentials you could put that extra cash towards include your yearly electricity costs (at an average of $1,986 per year**), or a 5-Star rated comprehensive car insurance policy***.
Here’s what your daily coffee spend could be used for instead:
Note: This is a general guide only
Action | What you’ll save | What you could spend it on |
Skip a $5 coffee every day for a year | $1,825 |
|
Skip a $5 coffee every workday for a year | $1,300 |
|
Skip a $2.50 - $3 coffee every workday for a year**** | $780 |
|
Keep your coffee and still save
They say you can’t have your cake and eat it too — but you may be able to keep your coffee and fight back against cost of living stress. Saying bye-bye to your barista is an easy way to curb unnecessary spending, but there are other quick fixes that can put more money in your pocket.
If you’re paying off a house, switching your loan from the average variable rate to the lowest in Canstar’s database could save you a massive $3,228 in your first year alone*. That’s the equivalent of 646 flat whites.
Not a home owner? Review your car, health, home or pet insurance policies; assess the interest rates on any other loans or credit cards; and make sure your energy, internet and mobile plans are competitive. Even changing your supermarket shopping habits, by swapping to home-brand products for the essentials, can save you thousands each year.
While a daily coffee or avocado toast habit can add up, that’s a loss you can potentially recoup by taking a look at your biggest bills.
*Source: Canstar 31/07/2026. Based on owner occupier variable loans on Canstar's database available for a loan amount of $600,000, 80% LVR and principal & interest repayments; excludes first home buyer only and introductory home loans, except the lowest variable rate which includes introductory loans. Monthly repayments and total interest cost based on a 30 year loan term.
** Source: Canstar Pulse Survey, May 2026 .
***Source: Canstar 28/05/2026. Based on comprehensive car insurance policies rated in Canstar’s 2026 Car Insurance Star Rating. Premiums include quotes for both new and used cars for a range of scenarios, with a state-specific target excess ranging from $800 to $1,000.
**** Source: $3 price based on the cost of a large flat white at 7-Eleven Australia or a small flat white at Guzman Y Gomez, $2.50 price based on the cost of a medium flat white at Hungry Jacks (if purchased through their Hungry Jacks app).
