Cost of Waiting Calculator

Investors waiting for interest rates to rise before considering a fixed-income investment may run the risk of a prolonged period of stable or lower rates. Alternatively, if rates do increase, the raise in rates may not be high enough (or soon enough) to offset potential income sacrificed during the waiting period. To calculate a hypothetical cost of waiting:

  • Enter the current annual yield available for a specific investment horizon
  • Enter an assumed value of a short-term rate
  • Click 'Calculate' for an analysis

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 Understand the results


Investment Horizon Current yield Assumed short-term rate

Current Yield %: enter the current yield of the investment horizon

Assumed short-term rate %: This value is the assumed/estimated interest rate earned by investing in an alternative short-term product.

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The Cost of Waiting Calculator and the information contained herein are provided for illustrative purposes and are not to be considered investment advice. Incapital makes no warrantees or representations related to the calculator's applicability or accuracy in regards to your individual circumstances. The calculator is hypothetical in nature, does not reflect actual investment results, and is not a guarantee of future results. All investments carry a degree of risk, and past performance is not indicative of future results. This calculator does not compare any specific investment product and investors should consult with a qualified financial and tax advisor before investing. Investment results can vary considerably and investors should consider their investment objectives, financial situation and the specific product features before investing in any financial product. Incapital does not market to individual investors and does not provide investment or tax advice.