Time is the biggest ingredient
A SIP's final value depends on three things: how much, at what return, and for how long. Of these, time has the largest effect because returns compound on earlier returns. The last few years of a long SIP often add more than the first ten.
How it is calculated
Both cases invest the same monthly amount at the start of each month until the goal date. "Start today" runs for the full period; "start later" runs for the period minus the delay. The catch-up SIP is the amount that, invested for the shorter period, reaches the "start today" corpus.
Start small instead of waiting
- Start with any amount you can afford today, even ₹500.
- Raise it every year with a step-up; see the SIP calculator.
- Link it to a real goal with the SIP goal planner.
Frequently asked questions
How much does a 5-year delay cost?
With ₹10,000 a month at 12% for 25 years you could build about ₹1.7 crore. Starting 5 years later, for 20 years, builds about ₹92 lakh, roughly ₹78 lakh less, even though you invested only ₹6 lakh less.
Why is the loss so much bigger than the money not invested?
The money you invest first stays invested longest, so it compounds the most. Delaying removes those best years, not just a few instalments.
Can I catch up later?
Yes, by investing more each month. The calculator shows the SIP needed after the delay to reach the same corpus. It is usually much more than the original SIP.
Are the returns guaranteed?
No. The calculator uses the return you enter as an assumption to show the effect of time. Mutual fund returns vary.