What does this tool estimate?
It contrasts the projected value of starting an investment now versus waiting, showing the opportunity cost of the delay over your chosen horizon.
Cost of Delay Calculator
See the impact of waiting before investing.
Enter your lump sum, return assumption, and delay window to view the estimated opportunity cost, save scenarios, and compare them side by side.
Inputs
Investment details
Results
US$54,621
Estimated difference after 30 years with a 5-year delay.
Delay cost
28.7%
Start now value
US$190,306
Delayed value
US$135,686
Cost of delay
US$54,621
Cost of delay (%)
28.7%
Estimates are illustrative and for educational purposes only. This tool does not provide financial or investment advice.
Growth view
Projected value comparison
Bars show the estimated value after 30 years when investing immediately versus waiting 5 years.
Start now
US$190,306
Delay 5 yrs
US$135,686
Nominal difference: US$54,621
Percentage gap: 28.7%
Scenario contrast
Start now vs delay
| Metric | Start now | Start after 5 yrs |
|---|---|---|
| Future value | US$190,306 | US$135,686 |
| Difference | — | US$54,621 |
| Percent gap | — | 28.7% |
Starting immediately results in US$190,306 after 30 years. Waiting 5 years produces US$135,686, a gap of US$54,621 (28.7%).
AI insight
Numeric summary
Run the calculator, then use the button for a plain-language depiction of these numbers. Nothing is stored or shared.
This AI text describes numbers only and is not advice.
Saved scenarios
Scenario comparison
Highlight how different delay assumptions change the final value.
Save at least one scenario to start comparison.
Results explainer
The summary shows two simple stacks: what your money could grow to if you start immediately (scenario), and what it could grow to if you start after a delay (scenario). The dollar gap between them is the cost of waiting. You can also see how contributions and time change that gap. A real-value view is optional, and everything here is illustrative.
How it works
The calculator grows a “start immediately” path for the full timeline, then a “start later” path that waits through your delay. Both use the same return and contributions, so the only difference is time in the market. The gap between the two end balances is the cost of waiting.
Inputs used
- Starting amount and optional recurring contributions
- Delay length before investing
- Annual return rate and compounding frequency
- Total years in the projection
Core formulas
- Future value: A = P(1 + r/n)^(n·t)
- Delayed start: grows after the delay with the same rate and cash flows
- Opportunity cost: Start-now value minus start-later value
Calculation steps
- Normalize rate and compounding to periods per year.
- Grow the “start immediately” balance across the full horizon with contributions.
- Hold cash idle during the delay for the “start later” path.
- Grow the delayed balance for the remaining years with the same settings.
- Compare both end values and show the difference as the cost of delay.
Example scenario
Imagine $10,000 invested today at 6% for 20 years with $200 monthly contributions. Starting immediately could end near $123,000. Waiting three years to start—same rate and contributions—might end around $92,000. That ~$31,000 gap is the cost of delaying three years. If monthly contributions were $300 after waiting, the delayed balance might reach about $108,000, but it still lags starting sooner. Higher returns or longer timelines widen the gap; lower returns or shorter timelines shrink it.
Interpretation notes
- Longer delays can compound into meaningfully lower end balances.
- Higher or earlier contributions reduce the drag from waiting.
- Changing the return rate shifts the gap; volatile returns can shrink or widen it.
- The model assumes smooth growth; real markets move unevenly.
- Comparing multiple delays helps highlight when a start date really matters.
Limitations & assumptions
Returns are shown as a steady annual rate with fixed compounding, but real markets move. Taxes, fees, penalties, and inflation are not included. Contributions are assumed to arrive evenly on the schedule you pick. Cash during the delay stays idle unless you model a different rate. Treat the outputs as directional illustrations, not forecasts or advice.
Disclaimer
Estimates are illustrative and for educational purposes only. This cost of delay calculator does not provide financial, investment, tax, or legal advice. Results depend on your inputs and assumptions and may not reflect real-world outcomes. Returns are uncertain and may be negative, and fees, taxes, or inflation are not included unless stated. Past performance is not a reliable indicator of future results.
FAQ
Understand what the delay cost represents
What’s included or excluded?
Included: your starting amount, delay period, return rate, timeline, and optional contributions. Excluded: taxes, fees, penalties, and market volatility.
What assumptions are baked in?
A constant annual return, fixed compounding, and evenly timed contributions. Inflation, taxes, and fees are not modeled here.
Can I save or export scenarios?
Yes. You can save up to four scenarios, compare them, and export results to CSV or PDF for your records.
Is my data private?
Calculations run in your browser. Exports are generated locally on your device.
Is this financial advice?
No. Outputs are illustrative only and do not account for your personal circumstances. This tool does not provide financial, investment, tax, or legal advice.
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