# Cost of Delay

This calculator helps you to calculate the Future Value of a Present Amount after taking into account the rate of return and time period. The amount here is compounded annually.

Desired goal amount

Number of years

Yr

Expected annual rate of return

%

Delay in investment

Yr

Cost of Delay

Per Month

In case you delay your investment by 15year(s), you have to Invest per month extra in order to achieve your goal amount of 5,00,000.

## Cost of Delay Calculator For Your Investment

Do you know the Cost of Delay Calculator was created specifically to help you comprehend how delaying your term insurance by a few years can affect your financial situation?

Yes! Your decision on when to get a suitable term plan is made easier thanks to the Cost of Delay Calculator!

Before we jump into how to use the Cost of Delay Calculator, let us discuss what is meant by the cost of delay:

### What is the Cost of Delay?

The Cost of Delay is the sum of money that must be spent if an investment is put off for several years. Thanks to this calculator, we will actually comprehend the effects of delaying our systematic investment by specific years.

The truth is that even minor delays can have a significant long-term impact on our wealth. Making small decisions, like starting your SIP immediately rather than waiting for it, is also a key to financial success.

### What will happen if we delay our investments?

1. No wealth will be created!

You heard correctly. Delaying your investments will prevent you from building wealth. Mr X, for instance, saves Rs. 1000 per month, whereas Mr Y doesn't put any money aside.

If you were to compare the two, Mr X could create money because he consistently saved over time, whereas Mr Y could not do so because he squandered everything he had.

2. Constant worry about the future

People who don't save always have this worry in their lives. They usually worry about what they will do if anything unexpected occurs in life that costs a significant sum of money. Yet, despite their fear, they ignore their circumstances and go on.

3. No peace

Life is full of surprises. Nobody has any way of knowing what will occur in the next second of our lives. Because life is so unpredictable, we frequently take significant risks by forgoing retirement investments. We will lose our peace of mind if we experience a life event that costs significant money.

### Why should we save for our future?

Everyone should prioritise saving for the future because the future is uncertain. Saving money for the future increases the likelihood that we will avoid getting trapped in debt. And it would be exceedingly challenging to escape the debt trap once we become caught.

### Cost of Delay Calculator

This calculator assists you in determining how much more money you would need to invest to reach your goal if you delayed commencing your investment.

### Cost of Delay Calculation Example

You can calculate this by using Elearnmarkets Cost of Delay Calculator by entering the following inputs:

1. Desired Goal Amount
2. Number of Years
3. Expected Annual Rate of Return
4. Delay in Investment

Now that we know what Cost of Delay is and how to use the Cost of Delay Calculator Online, let us discuss some FAQs about the same:

### What is the delay cost calculator?

The Cost of Delay is the sum of money that must be spent if an investment is put off for several years. Thanks to this calculator, we will actually comprehend the effects of delaying our systematic investment by specific years. The truth is that even minor delays can have a significant long-term impact on our wealth.

### Why investing early is important?

Investments have the potential to grow in value over time, and generally speaking, as we all know, the earlier we invest, the longer our money has to grow. Time is a significant asset for young people. Compared to older people, they typically have more time to wait for an investment's value to rise.

### What are the three components of cost of delay?

The three main components of cost of delay are user business value, time criticality and cost of delay divided by duration, also referred to as CD3. These parameters are the baseline for calculating the impact of cost of delay and for prioritizing among several features based on full-management-scenarios.