Cost to bear as a result of delay in investment. Any delay in making an investment leads to a cost/loss.
The accrued interest on the investment for the duration of the delay has a significant effect on the net returns.
The cost grows with the period of the investment; longer the investment more is the cost.
The cost of delay can be seen in form of a curve on the chart. The following fine-tuned simulators represent the cost of delay for single and periodic deposit investments.
This simulator represents the amount lost as a result of delay in one time lump sum investment.
Click here to try out the simulator.
Example: Alberto is planning to invest 6,000.00 USD since last 8 months. He needs the money after 5 years. He is expecting an interest rate of 10.00 % compounded annually.
| Amount | Period | Interest Rate | Compounding | Delay Period | | 6,000.00 USD | 5 Year | 10.00 % | Annually | 8 Month |
Click here  to see Alberto's loss due to the delay in investment.
This simulator represents the amount lost as a result of delay in investment recurring on a periodic basis.
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Example: Erin has plans to start investing 300.00 CAD per month for her retirement since last 3 months. She will be investing for 25 years. Her retirement plan should offer her an approximate interest rate of 11.50 % with quarterly compounding.
| Starting Amount | Deposit Mode | Periodic Amount | Period | Interest Rate | Compounding | Delay Period | Deposit At | | 0.00 CAD | Monthly | 300.00 CAD | 25 Year | 11.50 % | Quarterly | 3 Month | Start of the period |
Click here to see the cost of delay Erin has to bear.
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