Comparison
Invest Now vs Invest Later (Illustration)
Timing affects how long money can compound. These examples keep the amounts and assumptions the same and change only the start date to show the illustrative cost of waiting.
Published: December 22, 2025 · Updated: December 22, 2025 · By FinToolSuite Editorial
Test your timing in the calculator
Compare “start now” vs “start later” with your numbers.
Quick answer
- Starting earlier often means more compounding time (all else equal).
- Waiting can reduce how long money is invested, creating an opportunity cost.
- The outcome depends on your assumptions, cashflow, and risk comfort.
More on rate assumptions: average return assumptions explained.
Make it a fair comparison
Use the same lump sum, return assumption, compounding frequency, and horizon. Change only the start date so the gap you see comes from timing alone.
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.
Worked example (side-by-side)
Lump sum £10,000, 5% illustrative annual rate, 15-year horizon. Scenario A starts now; Scenario B starts 12 months later.
Scenario A: start now
Start date: today
Estimated ending value: ~£20,800
Scenario B: start 12 months later
Start date: +12 months
Estimated ending value: ~£19,800
Estimated cost of delay
~£1,000 difference
This gap is the illustrative opportunity cost of waiting under the same assumptions. Try these inputs in the Cost of Delay Calculator.
What changes the gap the most
- Longer delay windows.
- Higher assumed return.
- Longer overall horizon.
- Larger starting amount.
- Fees, taxes, and inflation can reduce net outcomes.
Assumptions matter
Rate assumptions are not guarantees. Run low/base/high cases to see how sensitive the gap is. Learn more in average return assumptions explained.
Related timing choices
Start timing is one decision; deposit style is another. See lump sum vs monthly investing for how contribution timing can change outcomes.
Test your own case
- Enter your amount.
- Pick a delay window you’re considering.
- Keep rate, horizon, and frequency the same.
- Save two scenarios: “Start now” and “Start later.”
- Compare side-by-side to see the estimated gap.
Open the tool: Cost of Delay Calculator · See ready-made examples: cost of delay examples.
FAQ
Is investing now always better than investing later?
Starting earlier often means more compounding time, but real outcomes depend on returns, fees, taxes, and personal circumstances.
How much does a 1-year delay matter?
It depends on rate, horizon, and amount. Run “now” vs “+12 months” in the calculator to see the estimated gap.
What return assumption should I use?
Use illustrative ranges (e.g., 3%, 5%, 7%) and compare. See average return assumptions explained.
Does compounding frequency matter?
It can change the projections slightly. Keep the frequency the same across scenarios for fair comparisons.
What if I plan monthly contributions instead of a lump sum?
Monthly contributions change the pattern. For deposit timing comparisons, see lump sum vs monthly investing.
Do fees, taxes, or inflation change the conclusion?
Yes. Higher costs or inflation can shrink net outcomes. Adjust assumptions if you want to see different net projections.
Can markets go down even if I start now?
Yes. Results are not guaranteed and returns can be negative. The calculator shows illustrative math based on your inputs.
Are calculator results guaranteed?
No. They are estimates based on your inputs; real outcomes vary.
Next steps
Save three scenarios: start now, start in 6 months, and start in 12 months. Compare the estimated opportunity cost side-by-side.