SIP Calculator: How Can 5-Year Delay Bring Your SIP Returns Down to ₹48 Lakh from ₹5 Crore?

Many people delay investing, thinking they’ll catch up later. But when it comes to long-term wealth creation through SIPs (Systematic Investment Plans), starting early is everything. Even a five-year delay can reduce your final corpus by crores. This article explores how postponing your SIP can cost you dearly, and why the best time to start is always now.

How Delayed Investing Impacts Your Retirement Corpus

If you start investing ₹15,000 every month at the age of 30, then your total retirement corpus could grow to a ₹5.2 crore in 30 years, assuming an annual interest rate of 12%.

But if you start just five years later at 35, that same monthly SIP will grow only to ₹2.8 crore. Delay it to 40, and you get only ₹1.4 crore. Wait till 45, and your savings shrink further to less than ₹80 crore.

Why Does This Happen?

This dramatic difference comes from the power of compounding. In simple terms, compounding means your money earns interest. And that interest earns more interest over time. The longer your money stays invested, the more it grows. Starting early gives compounding time to work its magic.

The High Cost of Delaying Your Investments

Delaying your SIP forces you to invest a lot more to reach the same goal. For example, if you begin at 40, you’d have to invest a large sum monthly to match the ₹5.2 crore someone would get by starting at 30 with just ₹15,000 monthly. That would also translate into a substantial increase in effort and financial pressure.

Conclusion

In investing, time beats timing. Waiting to start your SIP can cost you crores in the long run. The sooner you begin, the better your chances of creating true wealth. So don’t wait. Start small if needed but start now.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.