ELSS Calculator
ELSS (Equity Linked Savings Scheme) is a category of equity mutual fund that comes with a unique advantage: investments up to ₹1,50,000 per year qualify for a tax deduction under Section 80C, alongside the potential for equity-linked growth. It also carries a mandatory 3-year lock-in, the shortest among all Section 80C investment options. Our ELSS Calculator estimates both sides of this — your investment growth and the tax you save — in one place.
Enter your monthly investment, expected annual return rate, investment period, and your income tax slab rate. The calculator shows your invested amount, estimated returns, and total value, along with your annual and total tax savings under Section 80C.
ELSS Calculator Formula
Investment growth is calculated using the standard SIP future value formula, since most ELSS investments are made monthly:
M = P × [ ( (1 + i)^n − 1 ) / i ] × (1 + i)
- M = Total value at the end of the investment period
- P = Monthly investment amount
- i = Expected monthly rate of return (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly installments (years × 12)
Tax savings under Section 80C are calculated separately, based on your annual ELSS investment (capped at the ₹1,50,000 combined 80C limit) and your income tax slab rate:
Tax Saved Per Year = MIN( Annual Investment , ₹1,50,000 ) × Income Tax Slab Rate
Total Tax Saved = Tax Saved Per Year × Number of Years
Note that the ₹1,50,000 limit under Section 80C is shared across all your 80C investments combined (ELSS, PPF, EPF, life insurance premiums, etc.), not exclusive to ELSS — so your actual tax saving may be lower if you have other 80C investments using up part of that limit.
Example Calculation
Suppose you invest ₹12,500 every month in an ELSS fund (₹1,50,000 per year, maxing out the 80C limit through ELSS alone), for 10 years, expecting a 12% annual return, and you’re in the 30% tax slab.
- Monthly Investment: ₹12,500 (₹1,50,000/year)
- Expected Annual Return: 12%
- Time Period: 10 years
- Income Tax Slab Rate: 30%
| Type | Details |
|---|---|
| Invested Amount | ₹15,00,000 |
| Est. Returns | ₹14,04,238 |
| Total Value | ₹29,04,238 |
| Tax Saved Per Year (30% of ₹1,50,000) | ₹45,000 |
| Total Tax Saved (over 10 years) | ₹4,50,000 |
So while your ₹15,00,000 invested over 10 years could grow to approximately ₹29,04,238, you would also save approximately ₹4,50,000 in taxes over the same period by claiming the Section 80C deduction each year — a combined benefit that isn’t available with regular equity mutual funds outside the 80C basket.
FAQs about ELSS Calculator
What is the lock-in period for ELSS funds?
ELSS funds have a mandatory lock-in period of 3 years from the date of each investment (or each SIP installment, individually), which is the shortest lock-in among all Section 80C tax-saving instruments such as PPF (15 years) or tax-saving FDs (5 years).
How much tax can I save by investing in ELSS?
You can claim a deduction of up to ₹1,50,000 per financial year under Section 80C for ELSS investments, which reduces your taxable income by that amount. The actual tax saved depends on your income tax slab rate — for example, someone in the 30% slab saves up to ₹45,000 in tax for a full ₹1,50,000 ELSS investment in a year.
Does the Section 80C benefit apply under the new tax regime?
No. The Section 80C deduction, including for ELSS investments, is available only under the old tax regime. If you’ve opted for the new tax regime, you won’t be able to claim this deduction, though you can still invest in ELSS purely for its equity growth potential.
Can I invest more than ₹1,50,000 in ELSS in a year?
Yes, there’s no upper limit on how much you can invest in ELSS. However, only up to ₹1,50,000 per year (combined across all your Section 80C investments, not just ELSS) is eligible for the tax deduction — any amount invested beyond that still grows as a regular equity investment but doesn’t reduce your taxable income further.
Are ELSS returns and the withdrawal after lock-in taxable?
Yes. ELSS is an equity fund, so gains on redemption after the 3-year lock-in are treated as long-term capital gains (LTCG) and taxed at 12.5% on gains above ₹1,25,000 in a financial year, the same as any other equity mutual fund.
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