ELSS Calculator
InvestmentELSS funds combine equity growth with a Section 80C tax deduction and the shortest lock-in of any tax-saving option.
In short: An ELSS (Equity Linked Savings Scheme) is a tax-saving equity mutual fund with a 3-year lock-in. Investments qualify for a Section 80C deduction of up to ₹1.5 lakh a year under the old tax regime, while returns are market-linked and taxed as equity capital gains on redemption.
Your inputs
Your inputs
- Monthly investment
- ₹12,500
- Expected return rate
- 12%
- Investment period
- 5 yrs
- Income tax slab
- 30%
Results
Maturity value
₹10,31,080
Total invested
₹7,50,000
5 years of SIP
Estimated gains
₹2,81,080
Maturity − invested
Annual tax saved
₹45,000
80C deduction (old regime)
AI insights
- You put in ₹7,50,000 and it grows to ₹10,31,080 — about 1.4× your money, with ₹10,31,080 earned on top.
- Roughly 100% of the final value is growth, not your own contributions — the compounding is doing the heavy lifting.
- Staying invested longer, or stepping the amount up each year, tilts this even further in your favour.
Invested vs projected value
How your ELSS contributions and returns compound over the holding period.
Year-wise growth
| Year | Invested | Est. gains | Total value |
|---|---|---|---|
| 1 | ₹1,50,000 | ₹10,117 | ₹1,60,117 |
| 2 | ₹3,00,000 | ₹40,540 | ₹3,40,540 |
| 3 | ₹4,50,000 | ₹93,846 | ₹5,43,846 |
| 4 | ₹6,00,000 | ₹1,72,935 | ₹7,72,935 |
| 5 | ₹7,50,000 | ₹2,81,080 | ₹10,31,080 |
Values assume monthly compounding at the expected return; each instalment is locked in for 3 years.
How the ELSS Calculator works
Formula
- M
- Maturity value of the ELSS SIP
- P
- Monthly investment
- r
- Monthly rate of return (annual ÷ 12 ÷ 100)
- n
- Total number of monthly instalments
Step-by-step calculation
Worked with the default values.
- 1
Number of instalments (n)
5 yrs × 12
= 60
- 2
Maturity value
M = P × [((1+r)ⁿ − 1) / r] × (1+r)
= ₹10,31,080
- 3
80C eligible amount
min(1,50,000, 1,50,000)
= ₹1,50,000
- 4
Annual tax saved
₹1,50,000 × 30%
= ₹45,000
How it works
- Each monthly instalment buys ELSS units that stay locked in for exactly three years from their own purchase date.
- The invested amount, up to ₹1.5 lakh a year, is deducted from your taxable income under Section 80C — but only if you file under the old regime.
- The tax you save equals your 80C-eligible investment multiplied by your marginal slab rate; a 30% taxpayer saves the most.
Examples
₹12,500/month for 5 years at 12%, 30% tax slab
Grows to about ₹10.3 lakh from ₹7.5 lakh invested, saving ₹45,000 in tax each year.
₹5,000/month for 10 years at 12%
Grows to roughly ₹11.6 lakh from ₹6 lakh invested, with 80C benefit on ₹60,000 a year.
Understanding the ELSS Calculator
What makes ELSS different
An Equity Linked Savings Scheme is, at heart, a diversified equity mutual fund. What sets it apart is a dual role: it invests in stocks for growth, and it qualifies for a deduction of up to ₹1.5 lakh a year under Section 80C of the Income Tax Act. Among all 80C instruments it has the shortest lock-in — three years, against five for tax-saving fixed deposits and fifteen for PPF — which is why it is popular with investors who want tax relief without tying money up for a decade.
How the tax saving works
The deduction reduces your taxable income by the amount you invest, capped at ₹1.5 lakh. The rupee value of the saving depends on your slab: a 30% taxpayer investing the full ₹1.5 lakh saves about ₹46,800 including cess, while a 5% taxpayer saves around ₹7,800. Crucially, this benefit exists only under the old tax regime. If you have opted for the new regime, ELSS still works as an investment but delivers no 80C deduction, so weigh that before choosing it for tax planning.
Growth, lock-in and returns
Because ELSS is equity, its returns are market-linked — historically around 11–14% a year over long periods, but with real short-term volatility. The three-year lock-in works in your favour here: it discourages panic selling and, in a SIP, each instalment is locked from its own purchase date, maturing on a rolling basis.
Tax on redemption
When you finally sell, gains are treated as equity long-term capital gains, since the lock-in guarantees a holding period over a year. They are taxed at 12.5% on the amount exceeding the ₹1.25 lakh annual exemption, with no tax while units stay invested.
Using ELSS well
- Invest early in the year so every instalment counts toward that year's limit.
- Keep the 80C portion to ₹1.5 lakh and route any surplus to a no-lock-in fund.
- Confirm the old regime still beats the new one for your income.
- Choose direct plans to avoid commissions.
Used this way, ELSS is one of the few instruments that lets a single rupee both grow with equities and cut your tax bill.
Pros
- Shortest lock-in of any 80C option — just three years.
- Equity exposure offers higher long-term return potential than PPF, NSC or tax-saving FDs.
- Deduction of up to ₹1.5 lakh a year cuts your taxable income under the old regime.
- SIP mode averages your cost and spreads the tax benefit across the year.
- No tax on gains until you redeem, and only long-term rates apply.
Cons
- Returns are market-linked and can be negative over short horizons.
- The 80C deduction applies only under the old tax regime.
- Each instalment is locked for three years, so late-year SIPs stay locked longer.
- Long-term capital gains above ₹1.25 lakh a year are taxable on redemption.
Tips
- 1Start your ELSS SIP early in the financial year so every instalment counts toward that year’s 80C limit.
- 2Cap the 80C portion at ₹1.5 lakh a year — invest any surplus in a regular equity fund without a lock-in.
- 3Check whether the old regime with 80C actually beats the new regime for your income before relying on ELSS for tax.
- 4Prefer direct plans over regular plans to avoid distributor commissions and lift your net return.
- 5After the lock-in, review the fund rather than reflexively redeeming — a good ELSS can keep compounding.
Frequently asked questions
Everything you need to know about the ELSS Calculator.
What is an ELSS fund?
How much tax can I save with ELSS?
Is ELSS available under the new tax regime?
What is the lock-in period for ELSS?
How are ELSS returns taxed on redemption?
Are ELSS returns guaranteed?
Can I do a SIP in ELSS?
ELSS or PPF — which is better for tax saving?
What happens after the lock-in ends?
Is there a maximum I can invest in ELSS?
Methodology & sources
How the ELSS Calculator is calculated, and where the underlying rules come from.
How we calculate it
Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.
Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.
Last reviewed for accuracy on .
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