What waiting costs you

Put off a ₹5,000 SIP by five years and, with the same finish line twenty years out, you end up with ₹25,22,880 instead of ₹49,95,740. You skipped ₹3 L of instalments and lost ₹24.73 L — the difference is compounding you can never buy back.

By Sudarshan Babar · Software engineer and founder of the getinfotoyou tool network Updated

Your SIP, and how long you wait

₹500₹1 lakh

What leaves your bank account every month. Type any amount — the slider is just a shortcut.

years
Start today20 years late
%
1%25%

An assumption, not a promise. Equity funds are usually modelled at 10–12%; see what rate to assume.

years
1 year40 years

The price of the delay

If you start now ₹49,95,740
If you wait ₹25,22,880
Instalments you skip ₹3,00,000
Instalment needed to catch up ₹9,901
Cost of each month you wait ₹41,214
Total shortfall ₹24,72,860
₹0₹12.5 L₹25 L₹37.5 L₹50 L036912151820

What you investWhat compounding adds

Both paths share the same deadline. The late starter simply has fewer months.
What the investor who starts today builds, year by year.
YearMonthlyInvested so farReturnsValue at year end
1₹5,000₹60,000₹4,047₹64,047
2₹5,000₹1,20,000₹16,216₹1,36,216
3₹5,000₹1,80,000₹37,538₹2,17,538
4₹5,000₹2,40,000₹69,174₹3,09,174
5₹5,000₹3,00,000₹1,12,432₹4,12,432
6₹5,000₹3,60,000₹1,68,785₹5,28,785
7₹5,000₹4,20,000₹2,39,895₹6,59,895
8₹5,000₹4,80,000₹3,27,633₹8,07,633
9₹5,000₹5,40,000₹4,34,108₹9,74,108
10₹5,000₹6,00,000₹5,61,695₹11,61,695
11₹5,000₹6,60,000₹7,13,074₹13,73,074
12₹5,000₹7,20,000₹8,91,261₹16,11,261
13₹5,000₹7,80,000₹10,99,656₹18,79,656
14₹5,000₹8,40,000₹13,42,090₹21,82,090
15₹5,000₹9,00,000₹16,22,880₹25,22,880
16₹5,000₹9,60,000₹19,46,891₹29,06,891
17₹5,000₹10,20,000₹23,19,604₹33,39,604
18₹5,000₹10,80,000₹27,47,196₹38,27,196
19₹5,000₹11,40,000₹32,36,627₹43,76,627
20₹5,000₹12,00,000₹37,95,740₹49,95,740

Why the loss is so much bigger than the skipped instalments

This is the calculation that changed how I think about starting late, and it is why this tool exists — nowhere else seems to show it plainly.

In the reference case, five years of waiting means skipping ₹3 L of instalments. The final shortfall is ₹24.73 L — around 8 times the money you did not invest.

The reason is which years you lose. Waiting does not remove your last five years of instalments; it removes your first five — the only ones that get the full twenty years of compounding. You are not skipping the cheap seats, you are skipping the ones that compound longest.

The same mechanism explains why the last five years of a long SIP add so much less than people expect: that money has barely any time to work.

Catching up costs more than you would guess

The "instalment needed to catch up" row solves a specific question: if you do wait, what would you have to pay for the remaining years to land on the same final number?

In the reference case it is ₹9,901 a month rather than ₹5,000 — about 98% more, every month, for fifteen years. And that is the optimistic framing, because it assumes your income rose enough to make the larger figure affordable.

Waiting is not free and it is not neutral. It is a decision to pay considerably more later for the same outcome.

A fairer way to read this

This is not a reason for guilt

If you are reading this at 40 rather than 25, the useful conclusion is not "I have missed it" — it is "the next five years are the most valuable ones I still have". The same arithmetic that makes delay expensive makes starting today the best available move at every age.

Set the delay to 0 and note that the shortfall goes to zero. That is the point.

Before you rely on this

An estimate, not a forecast

This is arithmetic applied to assumptions you chose. Mutual funds carry market risk, returns are not guaranteed, and past performance does not indicate future results. Nothing here is personalised advice — for decisions of any size, speak to a SEBI-registered investment adviser.

Questions people actually ask

Is it too late to start investing at 40?

No, but the plan has to change shape. With 20 years to 60 you still have a long horizon, and the calculator above will show a real corpus. What you have less of is slack — so the step-up matters more, and pushing the goalpost out a few years buys a disproportionate amount.

Run your actual age and target through the retirement planner rather than a generic rule.

What if I invest a lump sum later to make up for it?

That works, and the required amount is larger than intuition suggests, because the lump sum also gets fewer years to compound. The goal planner gives the one-time figure for any target and horizon.

Does this assume markets go up steadily?

Yes — one constant rate, no volatility. That is a simplification, and in one respect it is conservative about delay: a late starter also has fewer market cycles to average across, which raises their risk in a way this model does not capture.

All assumptions are on the methodology page.