Examples
Cost of Delay Examples
Five quick examples showing what waiting might mean for your totals. Copy the inputs, run them in the calculator, and see how delay, rate, and horizon interact.
Published: December 22, 2025 · Updated: December 22, 2025 · By FinToolSuite Editorial
Run these scenarios in the calculator
Try “start now” vs “start after a delay” with your numbers to see the difference.
Disclaimer
Educational purposes only; not financial advice. Examples are illustrative; real returns vary and investments can go down as well as up. Fees, taxes, inflation, and provider rules vary by country and account type.
How to read these examples
Each example uses a lump sum, a return assumption, a delay window, and a total horizon. “Start now” grows for the full horizon, while “start after delay” grows for a shorter period. The difference is the illustrative opportunity cost.
Copy the inputs into the Cost of Delay Calculator to see the same outputs in your browser.
Five quick examples
Example 1: Small lump sum, short delay
£1,000 at 5% with a 6-month delay over a 10-year horizon.
- Lump sum: £1,000
- Return assumption: 5% (illustrative)
- Delay: 6 months
- Total horizon: 10 years
Start now
Estimated value: ~£1,630
Start after delay
Estimated value: ~£1,590
Estimated opportunity cost
~£40 over the horizon
Takeaway: even a short delay trims the 10-year total a little.
Try it in the calculatorExample 2: Medium lump sum, 1-year delay
£5,000 at 5% with a 12-month delay over 15 years.
- Lump sum: £5,000
- Return assumption: 5% (illustrative)
- Delay: 12 months
- Total horizon: 15 years
Start now
Estimated value: ~£10,400
Start after delay
Estimated value: ~£9,900
Estimated opportunity cost
~£500 over the horizon
Takeaway: a 1-year wait trims about £500 on this 15-year path.
Try it in the calculatorExample 3: Rate sensitivity
£10,000 with a 2-year delay over 15 years, comparing 3% vs 7%.
- Lump sum: £10,000
- Delay: 2 years
- Total horizon: 15 years
- Rates: 3% and 7% (illustrative)
At 3%
Start now: ~£15,600
Start after delay: ~£14,700
Estimated opportunity cost: ~£900
At 7%
Start now: ~£27,600
Start after delay: ~£24,100
Estimated opportunity cost: ~£3,500
Takeaway: higher return assumptions widen the cost of waiting.
Try it in the calculatorExample 4: Larger lump sum, 5-year delay
£20,000 at 5% with a 5-year delay over 20 years.
- Lump sum: £20,000
- Return assumption: 5% (illustrative)
- Delay: 5 years
- Total horizon: 20 years
Start now
Estimated value: ~£53,100
Start after delay
Estimated value: ~£41,600
Estimated opportunity cost
~£11,500 over the horizon
Takeaway: a long delay on a larger amount creates a noticeable gap.
Try it in the calculatorExample 5: Goal deadline framing
Illustrative goal: £30,000 target in 12 years. Compare starting now vs starting in 2 years at 5%.
- Target: £30,000
- Horizon: 12 years
- Return assumption: 5% (illustrative)
- Delay scenario: start in year 3 instead of year 1
Start now
Projected value: ~£30,000 (meets goal with these inputs)
Start after 2 years
Projected value: ~£26,300 (shortfall ~£3,700)
Takeaway: waiting widens the gap to the goal; see more ideas in cost of delay by goal deadline.
Try it in the calculatorWhat changes the cost of delay the most
- Longer delays reduce the time your money is growing.
- Higher return assumptions make the cost of waiting look larger.
- Longer remaining horizons amplify differences because of compounding.
- Larger starting amounts magnify the gap.
- Fees, taxes, and inflation can lower net outcomes.
Pick your return assumption
Try low/base/high rates to see sensitivity. A small change in the rate can materially change the estimated opportunity cost.
More on picking an illustrative rate: what return assumption should I use for cost of delay.
Common mistakes
- Treating the return assumption as guaranteed.
- Mixing months and years when entering the delay window.
- Changing multiple variables at once, making comparisons unclear.
- Leaving out fees, taxes, or inflation when estimating net outcomes.
- Not matching horizons across scenarios.
Need a walkthrough? See the how-to guide.
FAQ
What is “cost of delay”?
An illustrative estimate of the opportunity cost between starting now and starting after a delay.
How is opportunity cost calculated?
The calculator compares projected values for “start now” and “start after delay” using the same return and horizon, then shows the difference.
What return should I use?
Use illustrative rates and run low/base/high scenarios. See rate selection tips.
Does a 6-month delay matter?
Even short delays reduce the time in the market/account. The impact depends on rate, horizon, and amount.
Why does delay matter more over longer horizons?
Compounding has more time to amplify differences when the horizon is long.
Are the results guaranteed?
No. They are illustrative estimates based on your inputs; real returns vary and can be negative.
Do fees, taxes, and inflation matter?
Yes. They can lower net outcomes. The calculator helps illustrate the math; adjust assumptions to reflect your context.
How do I compare two delays fairly?
Keep the horizon and rate the same, change only the delay, and compare the projected values side by side.
Next steps
Save three scenarios: start now, start in 6 months, and start in 1–2 years. Compare the estimated opportunity cost.