Cost of delay calculator

Use this free cost of delay calculator to see how much final value you may give up by starting your SIP later. Enter your monthly SIP, an expected return, the number of years until you need the money, and how long you would wait before starting. The calculator compares starting today with starting later, for the same end date.

How this cost of delay calculator works

The calculator compares two investors who invest the same amount every month and need the money on the same date. One starts today. The other starts after the waiting period you enter. Money grows at the yearly return you enter, compounded monthly. For example, a ₹10,000 monthly SIP at an assumed 12% return for 25 years would grow to about ₹1.90 crore. The same SIP started 5 years later would grow to about ₹1 crore, which is about ₹90 lakh less, even though only ₹6 lakh less was invested. The table below the result shows how the gap builds up year by year. The result is an illustration, not a forecast.

Why does waiting cost so much?

Money invested early has more years to earn returns on its earlier returns. The biggest part of the growth comes in the last years, and it comes from the money put in at the start. A few years of delay removes those early instalments, and what they would have grown into. In the example above, even a one-year wait costs about ₹22 lakh.

What this calculator does not include

The result is before taxes, exit loads and fund expenses, and it does not allow for inflation. It assumes the same return in every year, while real markets go up and down, so use the figures to see the size of the effect rather than to predict an exact amount. Starting early does not remove market risk. It only gives your money more time.

अक्सर पूछे जाने वाले सवाल (FAQs)

What is the cost of delay?

It is the difference in final value between starting an investment now and starting the same investment later. It shows what waiting may cost you, even when the monthly amount stays the same.

Is it better to start with a small SIP now than to wait for a bigger one?

Often, yes. Starting with whatever you can manage lets time work for you, and you can raise the amount later as your income grows. Try our Step up SIP calculator to see the effect of increasing your SIP every year. Choose an amount you can continue comfortably, because a SIP you have to stop is of little help.

Already started late? What can I do?

You can raise your monthly SIP to make up the gap. Our Delayed SIP calculator will show how much higher it needs to be. You can also work out a SIP for a particular goal with our Goal SIP calculator.

Is the return shown guaranteed?

The calculator uses the rate you enter and assumes it stays the same, so the result is only as reliable as that rate. Mutual fund returns are market-linked and are not guaranteed. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Learn more on the AMFI investor awareness site.