ELSS Calculator India — Tax-Saving Fund Returns 2026
How the ELSS Calculator India Works
ELSS SIP returns at 14% annual return — tax savings and wealth creation
| Monthly SIP (₹) | Annual 80C Saving (₹) | 10-Year Wealth (₹) | 15-Year Wealth (₹) |
|---|---|---|---|
| ₹5,000 | ₹15,600 | ₹13,93,490 | ₹40,43,824 |
| ₹12,500 | ₹39,000 | ₹34,83,726 | ₹1,01,09,561 |
| ₹25,000 | ₹46,800 (max) | ₹69,67,452 | ₹2,02,19,122 |
| ₹50,000 | ₹46,800 (max) | ₹1,39,34,904 | ₹4,04,38,244 |
Real-World Examples — 2026
Salaried professional saving ₹12,500/month in ELSS for 15 years
Investing ₹12,500/month in ELSS (₹1.5 lakhs/year — the maximum 80C deduction) at 14% annual return for 15 years builds a corpus of approximately ₹1.01 crore. Additionally, the investor saves approximately ₹39,000 per year in income tax (30% bracket), adding up to ₹5.85 lakhs in tax savings over 15 years. ELSS uniquely combines wealth creation with tax efficiency.
ELSS vs PPF for tax saving — ₹1.5L/year for 15 years
Both ELSS and PPF qualify under Section 80C. PPF at 7.1% for 15 years on ₹1.5L/year grows to approximately ₹40.7 lakhs. ELSS at 12% for the same period grows to approximately ₹75.4 lakhs — nearly double. ELSS carries market risk and a 3-year lock-in per installment, while PPF is risk-free with a 15-year lock-in.
| Instrument | Rate | 15-Year Corpus | Lock-in | Tax on Maturity |
|---|---|---|---|---|
| ELSS | 12–16% (equity) | ₹75–₹1,01 L (at 12–14%) | 3 years per SIP | 12.5% LTCG above ₹1.25L |
| PPF | 7.1% (guaranteed) | ₹40.7 lakhs | 15 years | Fully exempt |
How to Use These Results
Should you invest ₹12,500/month in ELSS or spread across 80C instruments?
If you are in the 30% tax bracket and have a 10+ year horizon, allocating the entire ₹1.5L/year 80C limit to ELSS maximises both tax savings (₹46,800/year) and wealth creation potential. Combine with EPF contributions (which also count toward 80C) to reach the limit without fully concentrating in ELSS.
Does ELSS 3-year lock-in apply per installment or to the entire investment?
The 3-year lock-in applies per installment. Each monthly SIP installment is locked for 3 years from its date of investment. So in an ongoing SWP, some installments are always locked. This means you cannot redeem the entire ELSS investment at once until 3 years after the final SIP installment.
Frequently Asked Questions
What is ELSS and how does it save tax?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that qualifies for tax deduction under Section 80C of the Income Tax Act. Investments up to ₹1.5 lakh per year in ELSS reduce your taxable income by the same amount. For someone in the 30% tax bracket, this saves up to ₹46,800 in income tax annually. ELSS is the only mutual fund category with a tax benefit.
What is the lock-in period for ELSS?
ELSS has a mandatory lock-in period of 3 years per installment. Each SIP installment is locked for 3 years from the date of investment. For example, an installment invested in January 2024 can be redeemed from January 2027. You cannot withdraw ELSS units before the 3-year lock-in, making it the shortest lock-in among all 80C instruments (PPF: 15 years, NSC: 5 years).
Is ELSS return tax-free?
ELSS returns are not entirely tax-free. Since ELSS invests in equity, gains held over 1 year are taxed as Long-Term Capital Gains (LTCG) at 12.5% above ₹1.25 lakh per year. Since the 3-year lock-in ensures holdings are always long-term, STCG does not apply to ELSS. The tax on gains is significantly lower than the initial 80C tax saving, making ELSS net tax-positive in most scenarios.
ELSS vs PPF — which is better for tax saving in India?
ELSS historically delivers higher returns (12–16% over long periods) compared to PPF (currently 7.1%), but carries equity market risk. ELSS has a 3-year lock-in versus PPF's 15-year lock-in, giving more flexibility. PPF maturity is completely tax-free (EEE status), while ELSS gains above ₹1.25L/year are taxed at 12.5%. For long-term investors willing to accept market risk, ELSS typically creates more wealth. For risk-averse investors seeking guaranteed returns, PPF is more suitable.
Can I invest more than ₹1.5 lakh in ELSS in a year?
Yes, you can invest any amount in ELSS without an upper limit. However, the Section 80C deduction is capped at ₹1.5 lakh per year across all 80C instruments combined. Investments above ₹1.5 lakh do not get any additional tax deduction but continue to earn market-linked returns. For amounts beyond the 80C limit, consider investing in a regular equity mutual fund instead.
What return should I use for ELSS projections?
The ELSS category has delivered approximately 12–16% CAGR over 10–15 year periods historically, with the best funds generating higher returns. For conservative planning, use 12%. For moderate estimates, use 14%. Do not use more than 16% for projections, as past performance does not guarantee future returns. The actual return depends on the specific ELSS fund and market conditions.