How do I use the ELSS calculator?

1. Enter your monthly SIP: Add the amount you plan to invest every month in an ELSS fund. A ₹12,500 monthly SIP uses the full ₹1.5 lakh annual Section 80C limit before considering other deductions. 2. Set the expected return: Enter the annual return you want to assume. ELSS funds are equity-linked, so actual returns can be materially different from the assumption. 3. Choose the duration: Select the number of years you plan to keep investing. Each ELSS instalment has its own 3-year lock-in from the date of allotment. 4. Select tax regime and slab: Choose old regime if you can claim Section 80C. In the new regime, ELSS investments can still be made, but 80C tax savings are not available. 5. Review corpus and tax savings: Check total invested, projected returns, maturity value, the LTCG tax due at exit, annual tax saved, and the effective value after exit tax and 80C savings.

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equities and qualifies for tax deduction under Section 80C of the Income Tax Act. It has a mandatory lock-in period of 3 years, the shortest among all 80C investments.

How much tax can I save with ELSS?

You can claim a deduction of up to ₹1,50,000 per financial year under Section 80C. At the highest tax bracket of 30%, this translates to a maximum tax saving of ₹46,800 (including cess). This calculator shows the savings without cess for simplicity.

What are the risks of investing in ELSS?

ELSS funds invest in equities and are subject to market risk. Returns are not guaranteed and can be volatile in the short term. However, the 3-year lock-in enforces a minimum holding period that historically improves the probability of positive returns. Always consider your risk appetite before investing.

ELSS vs PPF vs FD: which is better for tax saving?

ELSS offers the shortest lock-in (3 years vs 5 for tax-saving FD, 15 for PPF) and potential for higher equity-linked returns, but both capital gains and dividend payouts can be taxable. PPF offers guaranteed returns and full tax exemption (EEE). Tax-saving FDs have guaranteed but lower returns with interest fully taxable. Choose based on your risk tolerance and liquidity needs.

Are ELSS returns taxable?

Yes. Long-term capital gains above ₹1.25 lakh in a financial year are taxed at 12.5%. Gains up to ₹1.25 lakh are exempt. Since ELSS has a 3-year lock-in, all redemptions qualify as long-term capital gains.

Tools/

ELSS Tax Saving Calculator

Calculate returns on ELSS mutual fund investments. See tax savings under Section 80C and compare your effective returns.

Monthly SIP Amount

₹500₹1,25,000

Expected Return Rate

1%30%

Investment Duration

3 Yrs30 Yrs

Tax Regime

Tax Bracket

Assumes full unused Section 80C limit up to ₹1.5 lakh per year. If you already use 80C elsewhere, actual savings may be lower.

Redeemable After Tax at Year 10

₹25.4 L

plus ₹4.5 L tax savings over 10 years

Invested

₹15 L

Returns

₹17.8 L

LTCG Tax at Exit

₹1.9 L

Still Locked

₹5.4 L

Tax Saved

₹4.5 L

Exit tax assumes the units that are free of lock-in are sold in one financial year: 12.5% on long-term capital gains above the ₹1.25 lakh exemption. Instalments still inside their three-year lock-in are shown separately: the last 35 are still locked at year 10 and unlock month by month after that. The exemption is per financial year and shared across all equity gains, so staggered redemptions can use it more than once. Tax saved under Section 80C excludes cess.

Tax Saved (Section 80C)

₹4,50,000

over 10 years at 30% bracket

Investment Growth & Tax Savings

Year-by-Year Breakdown

Year	Invested	Value	Returns	Tax Saved
Year 1	₹1,50,000	₹1,61,876	₹11,876	₹45,000
Year 2	₹3,00,000	₹3,47,927	₹47,927	₹90,000
Year 3	₹4,50,000	₹5,61,763	₹1,11,763	₹1,35,000
Year 4	₹6,00,000	₹8,07,534	₹2,07,534	₹1,80,000
Year 5	₹7,50,000	₹10,90,009	₹3,40,009	₹2,25,000
Year 6	₹9,00,000	₹14,14,669	₹5,14,669	₹2,70,000
Year 7	₹10,50,000	₹17,87,815	₹7,37,815	₹3,15,000
Year 8	₹12,00,000	₹22,16,687	₹10,16,687	₹3,60,000
Year 9	₹13,50,000	₹27,09,608	₹13,59,608	₹4,05,000
Year 10	₹15,00,000	₹32,76,142	₹17,76,142	₹4,50,000

About the ELSS calculator

Equity Linked Savings Schemes (ELSS) are diversified equity mutual funds that qualify for Section 80C deductions under the old tax regime. This calculator projects the future value of an ELSS SIP and estimates the tax saving created by eligible contributions.

Use it when you are comparing tax-saving options such as ELSS, PPF, EPF, and tax-saving FDs, or when you want to see how much of your 80C limit a monthly SIP uses. It is most relevant for investors who can accept equity risk and a minimum 3-year lock-in for each investment unit.

The projection is an estimate, not a guaranteed return. The calculator applies the expected annual return at a constant monthly rate and assumes the selected tax bracket and regime stay unchanged.

Frequently Asked Questions

Enter your monthly SIP
Add the amount you plan to invest every month in an ELSS fund. A ₹12,500 monthly SIP uses the full ₹1.5 lakh annual Section 80C limit before considering other deductions.
Set the expected return
Enter the annual return you want to assume. ELSS funds are equity-linked, so actual returns can be materially different from the assumption.
Choose the duration
Select the number of years you plan to keep investing. Each ELSS instalment has its own 3-year lock-in from the date of allotment.
Select tax regime and slab
Choose old regime if you can claim Section 80C. In the new regime, ELSS investments can still be made, but 80C tax savings are not available.
Review corpus and tax savings
Check total invested, projected returns, maturity value, the LTCG tax due at exit, annual tax saved, and the effective value after exit tax and 80C savings.

FV = P × [ ((1 + r)ⁿ − 1) / r ] × (1 + r)

FV is the future value of the monthly ELSS SIP
P is the monthly SIP amount
r is the monthly return rate (annual return ÷ 12, as a decimal)
n is the total number of monthly instalments (years × 12)

Tax saved per year is min(annual investment, ₹1,50,000, available 80C limit) × tax slab under the old regime. In the new regime, this calculator shows ELSS tax savings as ₹0. Exit tax is 12.5% of the long-term capital gain above ₹1,25,000 on the units that are free of their three-year lock-in, applied once on the assumption that they are sold in a single financial year; instalments still locked are shown separately.

Worked example

Suppose you invest ₹12,500 per month in ELSS for 10 years, assume a 14% annual return, and are in the 30% slab under the old regime.

Monthly ELSS SIP: ₹12,500
Duration: 10 years (120 instalments)
Expected return: 14% p.a.
Total invested: ₹15,00,000
Estimated returns: ₹17,76,142
Projected value at year 10: ₹32,76,142
Still locked at year 10 (last 35 instalments): ₹5,42,785
Redeemable at year 10: ₹27,33,357
Long-term capital gain on the redeemable part: ₹16,70,857
LTCG tax at exit (12.5% above ₹1,25,000): ₹1,93,232
Redeemable after exit tax: ₹25,40,125
Tax saved per year: ₹45,000
Total tax saved: ₹4,50,000
Effective value: ₹35,32,910

The SIP contributes ₹15 lakh and projects to ₹32.76 lakh at year 10, but every instalment carries its own three-year lock-in, so the last 35 instalments, worth ₹5.43 lakh, cannot be redeemed yet; the instalment paid exactly three years earlier has just come free. Selling the ₹27.33 lakh that is free in one financial year costs ₹1.93 lakh of long-term capital gains tax, leaving ₹25.40 lakh in hand with ₹5.43 lakh still invested. Adding ₹4.5 lakh of old-regime 80C savings gives an effective value of ₹35.33 lakh, assuming full deduction headroom every year.

Last reviewed 3 Sep 2026 · Sources: Income-tax Act, 2025 (Income Tax Department), Income Tax Department: slabs and deductions for salaried individuals

Section 80C deductions are available only under the old tax regime. Under the new regime, ELSS can be used for investing, but not for 80C tax savings.
The 80C limit is shared across eligible products. EPF, PPF, life insurance premiums, home loan principal repayment, and other deductions can reduce the headroom available for ELSS.
Each ELSS purchase has a 3-year lock-in. For SIPs, every monthly instalment unlocks separately after completing its own lock-in period.
ELSS is equity-linked. It can underperform or lose value, especially over shorter holding periods, even though the tax deduction is immediate.
Long-term capital gains above ₹1.25 lakh in a financial year are taxed at 12.5% under current listed-equity rules. The calculator deducts this exit tax once on the units that are free of lock-in, assuming they are sold in a single financial year; instalments still locked are shown separately. The ₹1.25 lakh exemption is per financial year and shared across all equity gains, so redeeming in tranches can use it more than once.

See your Section 80C picture in one place

Track ELSS, PPF and EPF together with the rest of your portfolio, so tax-saving decisions come from real numbers.

See your 80C in one place

ELSS Tax Saving Calculator

Inputs

Results

Investment Growth & Tax Savings

About the ELSS calculator

Frequently Asked Questions

See your Section 80C picture in one place

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