What this calculator shows
Most people delay starting a SIP for sensible-sounding reasons: waiting for the market to fall, for the next increment, for the wedding to be over. This calculator puts a rupee figure on that wait.
Both scenarios end on the same date, because your goal date doesn't move just because you started late. The only difference is how many years your money gets to compound.
How to use it
- Monthly SIP you plan to invest.
- Years until you need the money, counted from today.
- If you wait for: the delay you are considering.
- Expected return.
You get the cost of waiting, and the bigger SIP you would need after the delay to end up in the same place.
Worked example: ₹10,000 a month, 25-year goal, 12%
| You start | Value at the goal date | Cost of waiting | SIP needed to catch up |
|---|---|---|---|
| Today | ₹1.90 crore | — | ₹10,000 |
| 1 year late | ₹1.67 crore | ₹22.5 lakh | ₹11,345 |
| 2 years late | ₹1.47 crore | ₹42.5 lakh | ₹12,882 |
| 3 years late | ₹1.30 crore | ₹60.2 lakh | ₹14,643 |
| 5 years late | ₹1.00 crore | ₹89.9 lakh | ₹18,993 |
| 10 years late | ₹50.0 lakh | ₹1.39 crore | ₹37,609 |
A one-year delay means skipping ₹1.2 lakh of instalments and losing ₹22.5 lakh at the end. The lost money is not the instalments you skipped; it is the final years of compounding on everything else, which are the most valuable years of all.
"But what if the market falls after I start?"
Then your SIP buys more units at lower prices, which helps when markets recover. A SIP is built for exactly that situation. Waiting for a "better time" usually means waiting while the clock runs, and very few people manage to time their entry well. The SIP calculator shows what you build if you start now; the paperless KYC to start takes about ten minutes.
Questions people ask
What is the cost of delay in SIP?
It is the difference between what a SIP would grow to if you started today and what it grows to if you started later, with the same end date. At 12% over 25 years, a one-year delay on a ₹10,000 SIP costs about ₹22.5 lakh.
Is it better to start a small SIP now or a big one later?
Usually a small SIP now. Every year of compounding you add at the start increases the final value more than a larger amount added later. You can raise the SIP each year with a step-up.
Should I wait for the market to fall before starting a SIP?
Timing the market consistently is very hard. A SIP spreads your purchases over many months, so it does not depend on getting the start date right.
How much more do I need to invest if I start late?
In the example above, starting five years late needs ₹18,993 a month instead of ₹10,000, nearly double, to reach the same amount on the same date.
Does the cost of delay apply to lumpsum investments too?
Yes. A lumpsum invested a year later also loses a year of compounding. The effect is the same, just easier to see with SIPs.