SIP Delay Cost Calculator
Putting off a SIP by even a few years quietly costs far more than most people expect, because the earliest instalments are the ones with the longest time to compound. This calculator compares two identical SIPs that differ only in when they start, and shows the gap in final corpus. The result is usually striking: a short delay can shave off a large slice of wealth, even though the money you skip is comparatively small.
Years you postpone starting the SIP.
Cost of Delaying
₹33,12,271
Corpus if You Start Now
₹99,91,479
Corpus if Delayed
₹66,79,208
About the SIP Delay Cost Calculator
A SIP delay cost calculator projects the final corpus of a monthly SIP starting today and compares it with the same SIP begun a few years later. The difference between the two is the cost of waiting — the wealth you forgo purely by starting late.
Why it is useful
It is easy to tell yourself you will start investing next year, once your salary rises. This tool puts a rupee figure on that decision, showing that the compounding you lose in the early years is worth far more than the extra you could invest later, which makes a compelling case for starting now.
How the calculation works
Both scenarios use the SIP future value formula FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i is the monthly return (annual ÷ 12 ÷ 100) and n is the number of instalments. The delayed SIP simply has fewer instalments, so its n is smaller; the calculator subtracts its corpus from the on-time corpus to reveal the cost of the delay.
Key inputs explained
- Monthly SIP amount: The fixed sum you would invest each month in both scenarios.
- Expected return: The annual return assumed, currently around 10-12% for equity funds.
- Investment horizon: The end date or total years until you need the money.
- Delay period: How many years you postpone starting the SIP.
Example calculation
Inputs
- Monthly SIP
- ₹10,000
- Expected return
- 12% p.a.
- Start now
- 20 years (240 months)
- Delayed start
- 15 years (180 months)
Calculation breakdown
- On time
- 10,000 × [((1.01)^240 − 1) ÷ 0.01] × 1.01 ≈ ₹99.9 lakh
- Delayed 5 years
- 10,000 × [((1.01)^180 − 1) ÷ 0.01] × 1.01 ≈ ₹50.5 lakh
- Cost of delay
- 99.9 − 50.5 lakh
By waiting five years you invest only ₹6 lakh less (60 skipped instalments of ₹10,000), yet the final corpus almost halves, from about ₹99.9 lakh to ₹50.5 lakh. The lost ₹49 lakh is compounding you can never recover, which is why starting early beats investing more later.
Benefits
- Turns the abstract idea of compounding into a concrete rupee cost.
- Shows why starting a smaller SIP now can beat a larger one started later.
- Motivates action by quantifying the price of procrastination.
Limitations
- Assumes a constant return, while real markets are volatile year to year.
- Ignores the fact that a later start might allow a genuinely larger contribution.
- Excludes taxes and fund charges that apply to the actual corpus.
Tips
- Start with whatever amount you can afford now and step it up as income grows.
- Automate the SIP so it continues regardless of market noise.
- Revisit the plan yearly, but resist pausing during downturns when units are cheap.
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About this calculator
The SIP Delay Cost Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.