See how much less you end up with if you delay starting to save by one year. Compares future value starting now vs starting in 1 year.
Cost of Delaying Savings by 1 Year
Enter your planned monthly savings, expected annual return, and years until your target date. The calculator shows how much less you end up with if you delay starting by exactly one year.
Understanding the Cost of a 1-Year Delay
Why starting one year later reduces your future balance
Start now
You make 12 more monthly contributions and each of those (and all later ones) compounds for one extra year. The difference is the "cost of delay."
Start in 1 year
You contribute for one fewer year to the same target date. You lose both the contributions from year one and all the growth they would have earned.
Cost of Delaying Savings by 1 Year: How Much You Lose
Delaying the start of savings by just one year reduces your future balance because you make fewer contributions and lose a year of compound growth. This calculator shows the dollar and percentage cost of a 1-year delay.
The cost of delaying savings by 1 year is the difference between the future value of your savings if you start today and the future value if you start one year from today, assuming the same monthly amount and target date.
Start Now vs Start in 1 Year
If you start now, you make 12 more monthly contributions and each contribution has one more year to compound. If you start in 1 year, you contribute for one fewer year toward the same target date, so your ending balance is lower.
Why One Year Matters
Even one year of delay means losing 12 contributions plus all the growth those contributions would have earned over the remaining years. At higher return rates, the cost of delay is larger.
How It Is Calculated
We use the future value of an ordinary annuity: FV = PMT × [((1 + r)^n − 1) / r], where PMT is monthly savings, r is the monthly interest rate (annual rate / 12), and n is the number of months. "Start now" uses n = years × 12; "start in 1 year" uses n = (years − 1) × 12 for the same target date.
The Formula
Cost of 1-year delay = FV(start now) − FV(start in 1 year)
Why It Matters
Seeing the dollar cost of a 1-year delay can motivate you to start saving today, even with a small amount. The habit and the extra year of growth compound over decades.
Behavioral Nudge
Many people postpone saving until "the right time." This calculator shows that the right time is now; delaying by even one year has a measurable, often large, cost.
Using This Calculator
Enter your planned monthly savings, expected annual return (e.g. 7%), and years until your target date (e.g. retirement). The calculator shows future value if you start now, future value if you start in 1 year, and the cost of that 1-year delay in dollars and percent.
What to Enter
Use a realistic long-term return (e.g. 6–8% for a diversified portfolio). Years until target should be at least 2 so that "start in 1 year" still has at least one year of contributions.
Conclusion
Delaying savings by one year reduces your future balance by a meaningful amount. Use this calculator to see the cost, then start saving now—even a small monthly amount—to capture that extra year of contributions and growth.
Frequently Asked Questions
Common questions about the cost of delaying savings by 1 year
What is the cost of delaying savings by 1 year?
It is the difference between how much you would have at your target date if you start saving today versus if you start one year from today. You lose 12 months of contributions plus all the compound growth those contributions would have earned.
Why does a 1-year delay matter so much?
Because of compound growth. The money you invest in year one grows for the full period; money you invest in year two grows for one fewer year. Over long horizons (e.g. 30 years), that first year's contributions and their growth represent a large share of the total.
How is the future value calculated?
We use the future value of an ordinary annuity: FV = PMT × [((1 + r)^n − 1) / r], where PMT is monthly savings, r is the monthly interest rate (annual return / 12), and n is the number of months. "Start now" uses the full number of months; "start in 1 year" uses 12 fewer months.
What return rate should I use?
Use a long-term expected return for your asset mix (e.g. 6–8% for a diversified stock portfolio, before inflation). Higher assumed returns make the cost of delay larger because you lose more growth.
Does this account for inflation?
The calculator uses nominal (before-inflation) returns. If you use a real (inflation-adjusted) return, the future values are in today's dollars. Either way, the percentage cost of a 1-year delay is similar.
What if I can only save a small amount now?
Start anyway. A small amount now beats zero for a year. You can increase contributions later; the key is to lock in the first year of growth and build the habit.
How does this differ from the general "cost of delay" calculator?
This calculator fixes the delay at exactly 1 year so you can see the impact of "waiting one more year" in a simple, memorable way. The other calculator lets you enter any delay in years (e.g. 5 or 10) and shows catch-up costs.
What if my target is less than 2 years away?
The calculator requires at least 2 years until target so that "start in 1 year" still has at least one full year of contributions. For very short horizons, the cost of a 1-year delay is a large share of the total; start now.
Why is the cost of delay larger at higher returns?
Because the money you don't invest in year one would have grown at that rate for the entire period. The higher the return, the more valuable that first year's contributions and the bigger the gap between "start now" and "start in 1 year."
Should I use this for retirement only?
No. Use it for any savings goal with a target date (retirement, down payment, college, etc.). The same math applies: delaying by 1 year means fewer contributions and less compound growth by the target date.
Usage of this Calculator
Practical applications and real-world context
Who Should Use This Calculator?
People Who Haven't Started SavingTo see the cost of waiting one more year and to motivate starting today, even with a small amount.
Retirement SaversTo quantify how much a 1-year delay in starting (or increasing) retirement contributions costs at your target date.
Financial Educators & AdvisorsTo show clients the impact of procrastination in a simple, memorable way (fixed 1-year delay).
Young Adults & New EarnersTo understand why starting early matters and how much the "I'll start next year" mindset costs.
Limitations & Accuracy nuances
Constant contributions: Assumes the same monthly amount for the full period. In reality, many people increase contributions over time.
Constant return: Uses a single annual return. Real returns vary year to year; the cost of delay in dollar terms will vary with actual performance.
Fixed 1-year delay: This tool only shows the cost of delaying by exactly 1 year. For other delay lengths, use the Cost of Delay (Investing Late) calculator.
Real-World Examples
Example: $500/month, 7% return, 30 years
Start now: ~$566,000. Start in 1 year: ~$527,000. Cost of 1-year delay: ~$39,000 (about 7% less). That’s much more than the $6,000 you "saved" by not contributing in year one.
Example: $200/month, 6% return, 20 years
Start now: ~$92,000. Start in 1 year: ~$86,000. Cost of 1-year delay: ~$6,000 (about 6.5% less). Even modest savings show a meaningful cost to delaying.
Summary
Quick recap
This calculator shows how much less you end up with at a target date if you delay starting to save by exactly one year. You enter monthly savings, expected annual return, and years until target. It compares future value "start now" vs "start in 1 year" and reports the cost of delay in dollars and percent. Use it to motivate starting (or increasing) savings today.
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See how much less you end up with if you delay starting to save by one year. Compares future value starting now vs starting in 1 year.
How to use Cost of Delaying Savings by 1 Year Calculator
Step-by-step guide to using the Cost of Delaying Savings by 1 Year Calculator:
Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided
Frequently asked questions
How do I use the Cost of Delaying Savings by 1 Year Calculator?
Simply enter your values in the input fields and the calculator will automatically compute the results. The Cost of Delaying Savings by 1 Year Calculator is designed to be user-friendly and provide instant calculations.
Is the Cost of Delaying Savings by 1 Year Calculator free to use?
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Yes, the Cost of Delaying Savings by 1 Year Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.
Are the results from Cost of Delaying Savings by 1 Year Calculator accurate?
Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.