Financial Calculators
SIP Pause Impact Calculator
Six missed instalments are not six missed instalments. They are six missed instalments plus fifteen years of growth.
Cost of the pause at the end
₹3,95,471
₹60,000 skipped, ₹3,35,471 of growth lost on it
- Corpus without pausing
- ₹99,91,479
- Corpus with the pause
- ₹95,96,009
- Instalments skipped
- ₹60,000
The skipped instalments are only part of the cost; the rest is the growth those instalments would have earned for the remaining years. An early pause costs far more than a late one of the same length. If cash is tight, reduce the SIP rather than stop it.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The cost that is not on the statement
Pausing a SIP for a few months looks harmless: the amount skipped is small and you can always restart. But the money that was not invested in year five would have compounded for fifteen more years, and that growth is gone for good. The earlier the pause and the longer the remaining horizon, the larger the hidden cost.
This calculator runs the SIP twice, once uninterrupted and once with the pause, and shows the difference at the end split into the instalments themselves and the growth they would have earned.
Two exact simulations
Each month: value = (value + instalment) x (1 + r/12)\nDuring the pause the instalment is zero\nCost = corpus without pause - corpus with pauseWorked example: a Rs 10,000 SIP at 12% for 20 years reaches Rs 99,91,479. Pausing it for 6 months in year 5 skips Rs 60,000 of instalments and ends at Rs 95,96,009. The pause costs Rs 3,95,471, of which Rs 3,35,471 is growth the skipped money would have earned.
Frequently asked questions
Does pausing a SIP have a penalty?
No. Most fund houses allow a pause of one to six months on request, and banks simply return the auto-debit if the account is short, though repeated bounces can attract bank charges and cancel the mandate.
Is it better to pause or to reduce the amount?
Reduce. A smaller instalment keeps the habit and the compounding alive; a pause breaks both and is harder to restart than most people expect.
Should I pause when markets fall?
That is the most expensive time to pause: the instalments you skip would have bought the cheapest units of the whole plan. A falling market is the SIP's best month, not its worst.
What if I catch up later with a lumpsum?
Investing the skipped amount as soon as you can recovers most of the cost, but not all: the units bought later cost more if the market has risen. Enter the pause and see the gap you are trying to close.
A SIP is a habit. Protect the habit.
If cash is tight, talk to us before pausing; a smaller instalment or a short STP from your emergency fund usually costs far less.