What does waiting really cost?
Compare starting today with starting a few years from now, using your own numbers. Time is the one ingredient you can't add later.
Most of us plan to start saving "soon": after the next raise, once the car is paid off, next year. But money set aside earlier has more time to grow, and that growth can earn growth of its own. This is compounding, so a few years of waiting usually costs far more than the payments you skip. This calculator puts that gap in dollars, so you can see what "I'll start next year" might really cost and what it would take to catch up.
- 1Enter your numbers. Your age, the age you're saving toward and a monthly amount.
- 2Choose a delay. Pick a hypothetical return and how many years you might wait.
- 3See the difference. Compare both paths and the monthly amount needed to catch up.
Quick start
Projected balance by age
How the delay adds up
| If you start | At goal age | Cost of waiting |
|---|
Hypothetical estimates based only on your inputs. Ignores taxes, fees and inflation.
Important: This tool is for general education and information only. It is not financial, investment, tax, legal or insurance advice, and it is not an offer, solicitation or recommendation to buy or sell any product or security.
Results are hypothetical estimates based only on the numbers you enter. Any growth or return figures are hypothetical, are not guaranteed, and actual results can be lower or negative. Calculations ignore taxes, fees, expenses and inflation, and assume a steady return and on-time monthly contributions, which real life rarely delivers.
Please consult a licensed financial professional before making decisions. Your inputs are processed in your browser and are not saved or sent to NeoPenn Life Strategies LLC.
How is this calculated?
- Allowed ranges: age 16–80, goal age 20–100, monthly amount $0–$100,000, starting amount $0–$10,000,000, yearly return −10% to 20%, delay 1–20 years (and no more than the years left until your goal age). Values outside a range are corrected to the nearest limit, with a note under the field.
- Monthly rate
r = yearly return ÷ 12, compounded monthly; contributions are added at the end of each month. - Months to goal if you start today:
n = (goal age − age) × 12. If you waitdyears:m = n − d × 12. - Future value:
FV = start amount × (1+r)months + monthly × ((1+r)months − 1) ÷ r(when r = 0,FV = start amount + monthly × months). - Cost of waiting
= FV(start today) − FV(start later). In the "start later" case, your starting amount is also invested later. - Monthly needed to catch up: the monthly amount that, starting later, reaches the same balance:
(FV today − start amount × (1+r)m) × r ÷ ((1+r)m − 1). - Average projected gap per month of delay
= cost of waiting ÷ (d × 12). It is an average across the whole delay, not the cost of one extra month.
The best day to start was yesterday. The next best is today.
NeoPenn Life Strategies helps families and professionals turn "someday" into a plan, from retirement savings and wealth building to protecting the people who count on you. Bring your numbers to a free, no-pressure conversation.