Cost of Delay Calculator
See how much less a SIP grows if you start later but stop on the same date, and what it takes to catch up.
Cost of waiting
How it works
With a monthly SIP P, monthly return i = yearly return ÷ 12, n months to the goal and a delay of d months:
F(m) = ((1 + i)m − 1) ÷ i × (1 + i) (value of ₹1 a month for m months)
Start now = P × F(n) · Start late = P × F(n − d) · Cost = the difference
Catch-up SIP = P × F(n) ÷ F(n − d)
Worked example
₹10,000 a month at 12% for 10 years (120 months), started now or after 1 year.
- Start now: 120 instalments grow to ₹23,23,390.76
- Start late: 108 instalments grow to ₹19,48,215.05
- Cost of waiting = ₹23,23,390.76 − ₹19,48,215.05 = ₹3,75,175.71, though only ₹1,20,000 less was invested
- To catch up you would need ₹11,925.74 a month, 19.3% more
Frequently asked questions
What does "cost of delay" mean?
It is how much less money you end up with if you start the same monthly SIP later but still stop on the same date. Waiting means fewer instalments and, more importantly, less time for the early ones to grow.
Why is the cost bigger than the instalments I skip?
Because the instalments you skip are the ones that would have grown the longest. In the example above, skipping 12 instalments of ₹10,000 (₹1,20,000 in total) costs ₹3,75,176 by the end.
What is the catch-up SIP?
It is the monthly amount you would need to invest after the delay to end with the same value as starting now. It is always higher than your original SIP.
How is this calculated?
Both SIPs use the same formula as our SIP calculator: each instalment is invested at the start of the month and grows at the yearly return ÷ 12 every month. One runs for the full period, the other for the full period minus the delay.
Does a delay matter if returns are low?
It still costs you the skipped instalments, but the extra growth you miss is smaller at lower returns. At 0% the cost is simply the instalments you did not invest.
What if I start late but invest more?
Use the catch-up figure as a guide, or try the step-up SIP calculator to see how raising your SIP each year helps close the gap.
Are the returns guaranteed?
No. The calculator assumes a steady return for illustration. Real mutual fund returns go up and down, but the basic point, that earlier money has longer to grow, holds whenever returns are positive.
About these results
- Method and timing
- Both SIPs end on the same date and use the SIP convention: start-of-month instalments, compounding monthly at the return ÷ 12.
- Last verified
- Sources
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Mutual fund investments are subject to market risks, read all scheme related documents carefully. Figures assume a steady return at the rate you enter and are for information only, not investment advice.