Find out how much you could lose by delaying your Systematic Investment Plan (SIP). The cost of delay can be surprisingly high due to the power of compounding.
Starting your investments early is one of the most powerful principles of wealth creation. Even a small delay can have a significant impact on your final investment value due to the effect of compounding.
This calculator helps you visualize this impact by showing you the monetary 'cost' of procrastination. It calculates and compares two scenarios:
The difference between these two final amounts is the Cost of Delay. Seeing this number can be a powerful motivator to start investing as soon as possible.
The calculation is based on the future value formula for a series of regular payments (an annuity), which is what a SIP is. By calculating the future value for the full term and the delayed term, we can see the difference compounding makes over time.