Regret Calculator

The Regret Calculator shows you the opportunity cost of delayed investing. It calculates how much wealth you missed out on by not starting your investment journey earlier, and what it would take to catch up now.

Why it matters: This isn't about feeling bad-it's about understanding the true cost of procrastination and using that knowledge to motivate action today. Every day you delay is a day of compounding you'll never get back.

Opportunity cost is what you give up by choosing one option over another:

The Math of Delay:

When you don't invest, you lose not just the principal amount but all the returns it would have generated over time.

Example:

₹10,000/month × 12 months × 10 years = ₹12 Lakhs (principal)

At 12% return, this becomes ≈ ₹23 Lakhs

Opportunity cost = ₹23 Lakhs - ₹12 Lakhs = ₹11 Lakhs in lost returns

The Compounding Effect:

• Year 1 delay: Lose 1 year of compounding
• Year 5 delay: Lose the compounding on 5 years of contributions
• Year 10 delay: Could mean losing more in returns than you ever invested

This is why starting early is the single most powerful financial decision you can make.

Let's see how delay affects different investment amounts:

₹5,000/month at 12% for 10 years you delayed:

• What you could have had: ₹11.62 Lakhs
• What you actually invested: ₹0
• Opportunity cost: ₹11.62 Lakhs
• Returns lost: ₹5.62 Lakhs

₹10,000/month at 12% for 10 years you delayed:

• What you could have had: ₹23.23 Lakhs
• What you actually invested: ₹0
• Opportunity cost: ₹23.23 Lakhs
• Returns lost: ₹11.23 Lakhs

₹25,000/month at 12% for 10 years you delayed:

• What you could have had: ₹58.08 Lakhs
• What you actually invested: ₹0
• Opportunity cost: ₹58.08 Lakhs
• Returns lost: ₹28.08 Lakhs

The Pattern:

The longer you wait and the more you could have invested, the greater the regret.

The good news: It's possible to catch up. The bad news: It requires significantly more effort.

The Catch-Up Formula:

To reach the same corpus in the same remaining time, you need to invest more monthly because you have less time for compounding to work.

Example - 10-Year Delay, 12% Return:

Original plan: ₹10,000/month for 20 years = ₹1 Crore

After 10-year delay: Need ₹22,500/month for 10 years = ₹1 Crore

You need to invest 2.25x more monthly!

Catch-Up Strategies:

1. Higher monthly contributions

2. Aggressive (higher return) investments

3. Lump sum injections when possible

4. Extend your investment horizon (retire later)

5. Combine all of the above

Reality Check:

The longer you've delayed, the harder catching up becomes. At some point, the math makes it nearly impossible without major lifestyle changes.

Recognizing these excuses can help you avoid future regret:

"I'll start when I earn more"

Reality: You'll always find reasons to spend more. Start with whatever you can, even ₹500/month.

"The market is too volatile right now"

Reality: Time in the market beats timing the market. Volatility benefits long-term SIP investors.

"I have other priorities"

Reality: Financial security enables other priorities. Even small investments compound significantly.

"I'm too young to think about investing"

Reality: Youth is your biggest asset for investing. A 25-year-old needs to invest half of what a 35-year-old needs for the same goal.

"I don't know enough about investing"

Reality: Start with simple index funds or mutual funds. Learn as you go. Perfect knowledge isn't required to begin.

"I'll do it next month"

Reality: Next month has been "next month" for years. Start today with whatever amount you can.

Use regret as motivation, not paralysis:

Step 1: Accept the Past

You can't change what's done. Dwelling on regret without action only wastes more time.

Step 2: Calculate Your Reality

Use this calculator to understand your situation clearly. Knowledge empowers action.

Step 3: Start Immediately

Open an investment account today. Set up an SIP, even if small. Action beats intention.

Step 4: Maximize Catch-Up

• Increase SIP annually with salary growth (Step-Up SIP)
• Invest bonuses and windfalls
• Cut unnecessary expenses and invest the savings
• Consider higher-return investments if timeline permits

Step 5: Prevent Future Regret

• Automate your investments
• Review and increase contributions annually
• Don't stop SIPs during market downturns
• Stay invested for the long term

The best time to plant a tree was 20 years ago. The second best time is now.

Understanding why we delay investing:

Present Bias:

We overvalue immediate rewards and undervalue future benefits. That new phone feels more real than retirement savings.

Overconfidence:

"I'll earn more later and make up for it." Often, increased income leads to increased expenses, not savings.

Analysis Paralysis:

Waiting for the "perfect" investment or market timing prevents any action at all.

Fear of Loss:

Ironically, fear of losing money in the market causes you to certainly lose money to inflation and opportunity cost.

Mental Accounting:

Treating "investment money" differently than "spending money" creates artificial barriers to starting.

Breaking These Patterns:

• Automate investments so decisions aren't needed
• Start small to build the habit
• Focus on what you can control (savings rate)
• Accept that imperfect action beats perfect inaction