ELSS offers higher expected returns and a 3-year lock-in but carries market risk and 12.5% LTCG above ₹1.25 lakh of gains a year; PPF is guaranteed and fully tax-free but slower and locked for 15 years.
ELSS Calculator
One view of both benefits of an ELSS mutual fund: the Section 80C tax you save every year and the projected value of your ELSS SIP after the 3-year lock-in — compared with the same money in PPF and a tax-saver FD.
ELSS value
₹29,04,238
Tax saved per year (80C)
₹45,000
Tax saved over 10 years
₹4,50,000
Total invested
₹15,00,000
Same SIP in PPF @ 7.1%
₹21,88,379
Same SIP in tax-saver FD @ 6.05%
₹20,64,416
ELSS vs PPF vs tax-saver FD
| Year | Invested | ELSS | PPF | Tax-saver FD |
|---|---|---|---|---|
| 1 | ₹1,50,000 | ₹1,60,117 | ₹1,55,896 | ₹1,55,008 |
| 2 | ₹3,00,000 | ₹3,40,540 | ₹3,23,228 | ₹3,19,658 |
| 3 | ₹4,50,000 | ₹5,43,846 | ₹5,02,834 | ₹4,94,550 |
| 4 | ₹6,00,000 | ₹7,72,935 | ₹6,95,616 | ₹6,80,322 |
| 5 | ₹7,50,000 | ₹10,31,080 | ₹9,02,540 | ₹8,77,650 |
| 6 | ₹9,00,000 | ₹13,21,963 | ₹11,24,643 | ₹10,87,252 |
| 7 | ₹10,50,000 | ₹16,49,737 | ₹13,63,039 | ₹13,09,894 |
| 8 | ₹12,00,000 | ₹20,19,082 | ₹16,18,923 | ₹15,46,385 |
| 9 | ₹13,50,000 | ₹24,35,269 | ₹18,93,577 | ₹17,97,587 |
| 10 | ₹15,00,000 | ₹29,04,238 | ₹21,88,379 | ₹20,64,416 |
- 80C deduction capped at ₹1,50,000 a year (₹12,500 a month) and available only in the old regime. ELSS gains above ₹1.25 lakh a year are taxed at 12.5% LTCG.
How the ELSS Calculator works
ELSS (Equity Linked Savings Scheme) funds invest in equities and qualify for the 80C deduction. Each SIP instalment is locked for 3 years from its own date — the shortest lock-in among 80C options — after which units are free to redeem.
The tax saved is your slab rate × the deductible amount (max ₹1.5 lakh a year). The wealth built is the SIP's projected value; PPF and tax-saver FD rows use current notified rates.
Tax saved = min(annual investment, ₹1,50,000) × slab rate; Value = FV of SIP at expected return
Worked example
- Monthly ELSS SIP: ₹12,500
- Investment period: 10 Yr
- Expected ELSS return (p.a.): 12%
- Your tax slab (old regime): 30%
₹12,500 a month uses the full ₹1.5 lakh 80C limit, saving ₹45,000 of tax every year in the 30% slab — ₹4.5 lakh over 10 years — while the SIP itself grows to about ₹29 lakh at 12%, versus roughly ₹21.6 lakh in PPF.