Rytvae Consulting · Think Right · Invest Right
Cost of Delaying an SIP
Result
Chart
Show formula & working
Value = SIP × ((1 + r)n − 1) ÷ r × (1 + r), with n = full horizon (now) or horizon − delay (late)
r = assumed annual return ÷ 12; SIPs are taken as invested at the start of each month, as in the Goal SIP calculator.Details
How this works
Waiting shortens the time your money compounds. The last years of a long SIP add the most, so a delay costs far more than the instalments skipped.
The catch-up SIP shows how much more you would need each month to end up in the same place.
Frequently asked questions
Why is the cost so large?
The skipped early instalments would have compounded the longest.
Is it ever too late?
No — starting later still beats not starting; it just needs a larger SIP or a longer horizon.