Cost of Delaying Savings Calculator

"Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." — Albert Einstein

Waiting to begin your savings plan may have an important impact on your results. A delay of even a few years could cost thousands of dollars. This calculator helps show you how much postponing your savings plan may really cost.

In an age of increasing economic uncertainty establishing an emergency savings account is more important than at any other point in history. Unfortunately most people do not have much of a safety cushion.

Financial Planning.

What savings represents is freedom & beginning saving a few years early can have a profound impact on the amount you have saved for retirement — or if you'll even be able to afford to retire. In an always-on consumer-driven economy where people show off on social media it can be hard to delay gratification, but the value of doing so can be quite profound.

The following table shows how much a person will have saved 30 years from today, provided:

  • they start with $0
  • they make a regular $200 monthly contribution
  • they achieve a 6.6% rate of return, which is what the S&P 500 averaged with dividends reinvested from January 1, 1970 to December 31, 2016
Begin Date Monthly Deposit Rate of Return Total Invested Savings in 40 Years Investment Return
Today $200 6.6% $96,000 $447,708 $351,708
5 Years $200 6.6% $84,000 $314,945 $230,945
10 Years $200 6.6% $72,000 $218,497 $146,497
15 Years $200 6.6% $60,000 $148,431 $88,431
20 Years $200 6.6% $48,000 $97,531 $49,531
25 Years $200 6.6% $36,000 $60,554 $24,554
30 Years $200 6.6% $24,000 $33,691 $9,691


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