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.
Starting amount: The starting balance or current amount you have invested or saved. For this calculator, we assume your current savings is earning your annual rate of return whether you decide to delay your new contributions or not. For example, if you have a current balance of $1000 and never make any new contributions, your delayed and non-delayed results will be the same.
Additional contributions: The amount that you plan on adding to your savings or investment each period. The options include monthly, quarterly and annually. This calculator assumes that you make your contributions at the beginning of each period.
Years: The total number of years you are planning to save or invest.
Rate of return: The annual rate of return for this investment or savings account. The actual rate of return is largely dependent on the type of investments you select. For example, the total return including dividends of the S&P/TSX Composite Index for the 10 year period from December 31, 2010 through December 31, 2020 was 5.9% (source spindices.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
Years to postpone saving: The number of years you might wait before you begin saving. We will then delay your new contributions for that number of years.
Frequency of contributions: How often you make contributions to your account. The options include monthly, quarterly and annually. This calculator assumes that you make your contributions at the beginning of each period.
Cost of waiting: The difference in your savings or investment balance between your delayed and non-delayed plans.