Cost of Delay SIP Compounding Simulator
Measure how much terminal compounding corpus is forfeited by delaying an investment start by 1 to 10 years, and compute the required catch-up SIP. Benchmarked against India’s published RBI Repo Rate (5.5%) and MoSPI Headline CPI Inflation (5.54%).
Sample 5-Year Delay Penalty on ₹15,000/Month SIP (20-Year Horizon @ 12% p.a.)
Starting Today (20 Yrs): ₹1,49,87,219 vs Delaying 5 Years (15 Yrs): ₹75,68,640. Total Cost of Delay: ₹74,18,579. Catch-Up SIP Needed: ₹29,703/month.
Frequently Asked Questions
Why does delaying a SIP by just 3 to 5 years cost disproportionately large wealth?
Postponing the start removes the final, highest-value compounding years at the tail end of your horizon—where exponential returns generate far more wealth than fresh principal.
What is the Catch-Up Monthly SIP shown in the simulator?
It is the higher monthly installment you must invest over the shorter remaining duration to still accumulate the exact same target maturity value as starting today.
Is starting with a smaller SIP today better than waiting to invest a larger amount later?
Starting early with a modest SIP and applying an annual step-up captures early compounding cycles while allowing contributions to scale as income grows.