SIP Delay Cost Calculator
Calculate how much you would lose if you delayed your SIP investment.
What is SIP Delay Cost?
SIP Delay Cost is the lost potential wealth due to the delay in a Systematic Investment Plan. The later you start investing, the lesser the time your money will have to compound, leaving you with a smaller corpus at the end.
How does this delay of SIP affect your wealth?
When you start early, your money gets more time to compound with compounding power. A few years of delay will considerably lower the corpus.
Example: Impact of SIP Delay
| Scenario | SIP Amount (₹/month) | Investment Period | Assumed Return | Final Corpus (₹) |
|---|---|---|---|---|
| Start at Age 25 | 10,000 | 30 years | 12% | 3.53 Crore |
| Start at Age 30 | 10,000 | 25 years | 12% | 1.98 Crore |
| Start at Age 35 | 10,000 | 20 years | 12% | 1.00 Crore |
| Start at Age 40 | 10,000 | 15 years | 12% | 50.5 Lakh |
Such is the impact of a mere 5-year SIP delay: almost a 50% reduction in the corpus!
How to Avoid SIP Delay Cost?
- Start as early as possible – Even a small SIP amount can grow significantly over time.
- Increase SIP amount if you've delayed – A Step-up SIP can help bridge the gap.
- Long-term investment – The longer your money stays, the greater the compounding effect.
What is SIP Delay Cost Calculator?
A SIP Delay Cost Calculator will show an investor how much more delay can impact the loss in returns due to non-compounding. The more the delay time, the more potential loss is missed through compounding.
Why Use a SIP Delay Cost Calculator?
- This would help you see the effect that investing will have on you.
- It improves disciplined investing
- Help in planning for your financial goals.
