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ELSS Calculator – Equity-Linked Savings Scheme

Created by Tibor Pál, PhD candidate and Purnima Singh, PhD
Reviewed by Steven Wooding
Last updated: Jan 18, 2024

Use this ELSS calculator to estimate the returns on your investment in equity-linked saving schemes. Just enter the type (SIP or lumpsum), amount, and frequency of your investment, and the ELSS mutual fund calculator will help you to plan your investments efficiently.

Are you looking for investment options that can also help reduce your income tax liabilities? If you are, the ELSS (equity-linked saving scheme) funds might be a good investment option for you.

Continue reading this article to learn:

  • What are ELSS mutual funds?
  • How can ELSS help you in saving tax?
  • ELSS vs. PPF; Which is better?
  • How to invest in ELSS?
  • How to calculate the return of your investments using the ELSS return calculator?

If you are more interested in calculating return on PPF investments, check out the PPF calculator.

What are ELSS funds?

ELSS, or equity-linked saving scheme, is a tax-saving investment option offered by mutual fund companies. ELSS mutual funds primarily invest in equity and equity-related instruments across market sectors. ELSS are very popular among retail investors as they offer tax savings as well as capital appreciation.

ELSS investments have a lock-in period of 3 years. You can invest in an ELSS scheme either with a lump sum amount or through a systematic investment plan (SIP) where you invest at periodic intervals.

How to use the ELSS calculator?

Now let us see how we can use the ELSS calculator to find the final balance of our investment in an ELSS mutual fund.

ELSS inputs

  1. Using the drop-down menu, choose the type of investment (SIP) and I'd like to know the final balance.

  2. Enter the frequency (monthly) and amount of investment (Rs. 10,000).

  3. Type the expected rate of return (12.5%) and investment duration (10 years). You can also choose the start date of your investment.


  1. The ELSS calculator will display a summary of your investment and returns, i.e., the final balance (Rs. 23,93,813), total investment (Rs. 12,00,000), and total return (Rs. 11,93,813) on your investment.

  2. You can also see how your investment grows over the years by using the provided chart of balances and table of payment schedules.

Tax savings in ELSS mutual funds

The investments in ELSS are eligible for a reduction in tax liability under section 80C of the I.T. Act. You can claim a deduction of up to Rs. 1.5 lakh per financial year. In addition, capital gains up to Rs. 1 lakh are exempt from income tax.

If your capital gain is higher than Rs 1 lakh per financial year, you will have to pay 10% tax on it, irrespective of your income tax slab.

When it comes to tax savings, ELSS mutual funds are the most preferred option for retail investors because of the following reasons:

  • Shortest lock-in period: Of all the tax-saving options (e.g., PPF (15 years), tax-saving fixed deposits (5 years), etc.), ELSS has the shortest lock-in period of 3 years.

  • Open to NRIs: Tax saving investment options like PPF or NSC are unavailable to non-resident Indians (NRI). However, they can invest in ELSS mutual fund schemes.

  • Higher return: ELSS offer a higher return on your invested capital as compared to other investment options, like PPF, FDs, RDs, or post office monthly income scheme.


There are several saving instruments that you can use to get tax benefits, for example, PPF (Public Provident Fund), tax-saving FDs, ULIPs, and ELSS. Of all these options, PPF and ELSS are considered to be the most efficient. In the following text, we will discuss particular points of difference between the two:

  • Flexibility: The most significant advantage of ELSS over PPF is flexibility. While PPFs have a lock-in period of 15 years, the lock-in period for ELSS funds is only 3 years. Moreover, there is no upper limit on how long you can invest in ELSS funds (even for 100 years!). PPFs do not allow such flexibility and are not open for investments from NRIs.

  • Risk: PPF investments are guaranteed by the Government of India. Hence it is the safest investment option. ELSS funds are market-linked. Therefore, the return on ELSS investment is subject to fluctuations in stock market conditions.

  • Return: The Government declares the annual interest rates of PPF. The current interest rate is 7.1%. In general, ELSS funds offer a higher return of 12%-16% per year.

  • Tax benefits: Both PPF and ELSS investments allow a reduction of up to Rs. 1.5 lakh in taxable income under Section 80C. However, in the case of PPF, the interest earned is also tax-exempt. On ELSS returns, you have to pay a tax of 10% on capital gains above Rs. 1 lakh.

  • Investment limit: The maximum you can invest in a PPF account is Rs. 1.5 lakh. In contrast, you can invest as much as you want in ELSS funds.

You can choose to invest in either of the two or a combination of the two depending upon your risk appetite and investment horizon.

How to invest in ELSS?

Investing in ELSS mutual funds is very easy these days. Most asset management companies (AMCs) allow investors to apply online by submitting the following documents for KYC (know your customer):

  • Address proof; and
  • Identity proof.

Once the KYC requirements are fulfilled, you can start investing by logging into the AMC website. You can also approach your bank or other investment service providers to help you invest in ELSS mutual funds.

ELSS mutual fund calculator disclaimer

You should consider the ELSS calculator as a model for financial approximation. All payment figures, balances, and interest figures are estimates based on the data you provided in the specifications that are not exhaustive despite our best effort.

For this reason, we created the calculator for instructional purposes only. Still, if you experience a relevant drawback or encounter any inaccuracy, we are always pleased to receive helpful feedback and advice.


Is an ELSS tax free?

The capital gains from ELSS mutual funds are tax-free as long as the gains are up to Rs. 1 lakh per financial year. Capital gains above Rs. 1 lakh are taxed at 10%.

Can I withdraw from an ELSS before 3 years?

No, an ELSS has a lock-in period of 3 years. Which means you can't withdraw from it before 3 years.

Can NRI invest in ELSS mutual funds?

Yes, NRIs can invest in ELSS mutual funds. However, some asset management companies do not allow mutual fund investments from NRIs in Canada and the USA.

Can I invest lump sum in ELSS?

Yes, you can invest in ELSS either in a lump sum or through the SIP route.

Which is better ELSS or PPF?

Both ELSS and PPF have certain advantages as well as limitations. So depending upon your requirements and risk appetite, you can choose which is better for you while keeping the following points in mind:

  • Tax benefits: PPF is the most tax-friendly investment option as the interest earned is also entirely tax-free. In the case of ELSS, only capital gains up to Rs. 1 lakh are tax-free.

  • Liquidity: ELSS offers more liquidity in the sense that they have a lock-in period of 3 years. In comparison, PPF has a lock-in period of 15 years.

  • Risk: PPF offers an almost risk-free return, whereas ELSS investments are subject to market fluctuations.

  • Return: In general, ELSS mutual funds offer higher returns as compared to PPF.

Tibor Pál, PhD candidate and Purnima Singh, PhD
Type of investment
I'd like to know the...
final balance
ELSS inputs
Amount of investment
Frequency of SIP
Expected rate of return
Investment duration
Start date
Your initial investment will become $2,393,813.29 at the end of the term.
Final balance$2,393,813.29
Monthly deposit$10,000.00
Total deposit$1,200,000.00
Total return$1,193,813.29
Number of deposits120
End of termApr. 24, 2034
chart of balances
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