What is the Cost of Delay Calculator?
The Cost of Delay Calculator compares two contribution schedules under the same amount, planning return assumption and end date. One starts immediately and the other begins after the entered delay.
The displayed difference is caused by the assumed contribution timing and constant rate. It is not a forecast, market-timing instruction or recommendation to invest immediately.
How does it work?
The Cost of Delay Calculator uses the standard future value of an annuity formula, the same mathematics that powers every SIP projection. For a monthly SIP, the formula is: FV = P × [(1 + r)^n – 1] / r × (1 + r), where P is the monthly investment amount, r is the monthly rate of return (annual rate divided by 12), and n is the total number of months. The calculator runs this formula twice — once for the "start now" scenario and once for the "delayed start" scenario — and the difference between the two future values is your cost of delay.
For a lump-sum scenario, the calculator applies FV = PV × (1 + r)^n. Enter a planning return assumption you want to test; NiyamFin does not supply an equity, debt, EPF or PPF return for this comparison.
The output is pre-tax and excludes product charges. Actual returns and inflation can vary materially, so the displayed difference is only a scenario result.
Worked example
Enter ₹15,000 per month, a 25-year end date, a two-year delay and a planning return assumption. The calculator reports the modeled difference between the two schedules. Changing the return assumption changes both scenarios and their difference.
When to use this calculator
- 1Compare two contribution schedules with the same end date and planning assumption.
- 2Inspect the mathematical effect of changing a start date without treating it as market-timing advice.
- 3Test a delay scenario using contribution and return assumptions selected by the user.
Common mistakes to avoid
- ✕Interpreting the comparison as a prediction about market entry timing.
- ✕Applying the simplified schedule comparison to a product with different crediting or contribution rules.
- ✕Treating a nominal modeled difference as an inflation-adjusted amount.
- ✕Using the calculator to compare insurance products or prescribe a product structure.
- ✕Treating the result as an instruction to continue or pause an existing investment.
Frequently asked questions
- How much does a one-year delay change the modeled result?
- It depends entirely on the amount, horizon and planning rate entered. Use the calculator rather than a fixed rule of thumb.
- Does the result decide when or how I should invest?
- No. It compares two simplified schedules under constant assumptions and does not account for market conditions, liquidity, risk or product suitability.
- Does the cost of delay apply to PPF and EPF as well?
- Yes, contribution timing affects compounding. For PPF, the government-notified rate is 7.1% for Q3 FY 2026-27 and can change in later quarters. Use actual contribution dates and the applicable scheme rules rather than treating one quarter's rate as permanent.
- What return rate should I enter?
- Enter a planning assumption you want to test. NiyamFin does not prescribe a mutual-fund or scheme return. Compare multiple assumptions because actual outcomes may differ materially.
- Does the calculator recommend starting now?
- No. It reports the mathematical difference between two entered schedules under one constant rate. Affordability, liquidity, risk and product suitability are outside the model.