Cost of Waiting to Invest Calculator

Why the first years count most

Money invested early has the longest time to compound, so it ends up doing far more work than money added later. Delaying by a few years removes those early contributions and, more importantly, the decades of growth they would have earned at the end.

Investing $400 a month from 25 to 65 at 7% grows to about $1,050,000. Starting at 35 instead, the same $400 a month reaches only about $490,000, less than half, even though you put in only $48,000 less. To catch up from 35, you would need to invest about $860 a month.

What to do if you started late

Starting late is common, and the answer is the same: start now with what you can, raise the amount as income grows and use catch-up contributions to retirement accounts after 50. Every year you wait from today makes catching up more expensive, so the best time to begin is always the next payday.

The same $400 at different starting ages

Investing $400 a month at 7% until 65 gives about $1.05 million if you start at 25, $720,000 if you start at 30 and $488,000 if you start at 35. Starting at 45 gives about $208,000, and at 55 about $69,000.

The amount you actually put in falls much more slowly than the result: $192,000 of deposits from age 25 against $144,000 from 35. The rest of the gap is growth that late starters never get, which is why even a small amount invested early is worth more than a larger amount later.