ELSS Calculator
Calculate returns on Equity Linked Savings Scheme (ELSS) mutual funds with Section 80C tax benefits and 3-year lock-in.
Total Invested
₹3,00,000
Wealth Gained
₹1,12,432
Maturity Value
₹4,12,432
Total Tax Saved
₹90,000
Growth Over Time
₹4,12,432
| Year | Invested | Value |
|---|---|---|
| 1 | ₹60,000 | ₹64,047 |
| 2 | ₹1,20,000 | ₹1,36,216 |
| 3 | ₹1,80,000 | ₹2,17,538 |
| 4 | ₹2,40,000 | ₹3,09,174 |
| 5 | ₹3,00,000 | ₹4,12,432 |
| Year | Invested | Value | Gains |
|---|---|---|---|
| 1 | ₹60,000 | ₹64,047 | ₹4,047 |
| 2 | ₹1,20,000 | ₹1,36,216 | ₹16,216 |
| 3 | ₹1,80,000 | ₹2,17,538 | ₹37,538 |
| 4 | ₹2,40,000 | ₹3,09,174 | ₹69,174 |
| 5 | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
What is ELSS?
ELSS (Equity Linked Savings Scheme) is a type of tax-saving mutual fund that qualifies for deduction under Section 80C of the Income Tax Act. It comes with the shortest lock-in period among all 80C investment options — just 3 years. ELSS funds invest primarily in equities, offering the potential for higher returns compared to traditional tax-saving instruments like PPF or tax-saving FDs.
How is ELSS Return Calculated?
ELSS returns are calculated using the same SIP formula as regular mutual funds: FV = P × (((1 + r)^n - 1) / r) × (1 + r), where P is monthly investment, r is the monthly rate of return (annual rate / 12), and n is total months. The tax saving is calculated separately: Annual Tax Saved = min(Annual Investment, ₹1,50,000) × Tax Bracket %.
ELSS vs Other 80C Options
- ELSS vs PPF: ELSS has a 3-year lock-in (PPF: 15 years), market-linked returns (PPF: 7.1% guaranteed), and no investment cap for returns though 80C benefit is capped at ₹1.5 lakh
- ELSS vs NPS: ELSS offers full liquidity after 3 years (NPS: locked till 60), but NPS provides an additional ₹50,000 deduction under 80CCD(1B)
- ELSS vs Tax-saving FD: ELSS has potential for higher returns with equity exposure (FD: ~7% guaranteed), shorter lock-in (FD: 5 years), but FD interest is taxable while ELSS LTCG up to ₹1.25 lakh is tax-free
FAQ: What is the maximum ELSS investment for tax benefits?
You can invest any amount in ELSS, but the tax deduction under Section 80C is capped at ₹1,50,000 per financial year. This limit is shared with other 80C instruments like PPF, EPF, life insurance premiums, and tax-saving FDs. At the highest tax bracket of 30%, the maximum tax saving from ELSS is ₹46,800 (including cess).
FAQ: What is the ELSS lock-in period?
ELSS has a mandatory lock-in period of 3 years — the shortest among all Section 80C tax-saving investments. After 3 years, your units are automatically unlocked and you can redeem them anytime. For SIP investments, each monthly instalment has its own 3-year lock-in from the date of investment.