Witan Way

Cost of Waiting

What does waiting really cost me?

Two identical plans, one started later. The money you would have invested is kept aside rather than spent, so what the comparison isolates is time — nothing else.

Your plan

The same assumption applies to both plans. This is not a view on markets.

Wait before starting

During the wait the money is set aside and earns nothing. It is not spent.

Cost of waiting

€26,058

Over 25 years, waiting 5 years leaves you with this much less.

If you start now

€381,063

If you wait

€355,005

Share of the outcome lost

6.8%

Set aside while waiting

€40,000

Monthly needed after the delay

€557

+€57

Where the two plans separateStarted nowStarted later

The flat stretch is the wait: the money is there, it is simply not invested yet.

Show these figures as a table
YearStarted nowStarted later
0€10,000€10,000
1€16,763€16,000
2€23,932€22,000
3€31,532€28,000
4€39,587€34,000
5€48,125€40,000
6€57,176€48,563
7€66,770€57,640
8€76,939€67,262
9€87,719€77,461
10€99,145€88,272
11€111,257€99,731
12€124,096€111,879
13€137,705€124,755
14€152,130€138,403
15€167,422€152,871
16€183,630€168,206
17€200,811€184,462
18€219,023€201,693
19€238,328€219,958
20€258,791€239,318
21€280,481€259,841
22€303,474€281,594
23€327,845€304,653
24€353,679€329,096
25€381,063€355,005
Method, sources and limits
Method version
1.0.0
  • Both plans use the same return assumption, monthly compounding and end-of-month contributions. While waiting, the capital and the planned contributions are set aside and earn nothing; they are not spent. No tax, no fees.

Past performance is not a guide to future returns. These figures describe what happened over the period shown and nothing else.

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Questions about this tool

Why does the waiting money earn nothing?
Because the question is what investing later costs, not what spending the money costs. Crediting the idle cash with a return would smuggle in a second assumption and quietly shrink the answer.
Does this say I should invest today?
No. It measures one thing: a shorter exposure to the same assumed return compounds less. Whether that assumption holds is exactly what nobody knows, and this tool does not pretend to.
Why can catching up be impossible?
Because the missing growth has to be replaced by contributions in fewer remaining months. Past a certain delay there are not enough months left, whatever you pay in.

Witan Way is an independent, rules-based investing education platform. Nothing published constitutes personalised investment advice, a solicitation, or a recommendation to buy or sell. Capital is at risk. © Witan Way.