ELSS Calculator
Project returns on tax-saving ELSS mutual funds and the Section 80C deduction they unlock.
About the ELSS Calculator
Equity Linked Savings Schemes are equity funds with a 3-year lock-in per instalment, the shortest of the Section 80C options. Under the old tax regime, up to ₹1.5 lakh a year is deductible. The new regime, the default since FY 2023-24, doesn't allow it. Gains above ₹1.25 lakh a year are taxed at 12.5% as long-term capital gains.
The formula
Tax saved = min(investment, 1,50,000) × slab rate × 1.04
Worked example
Example: Expected value = ₹41,90,530
- Inputs: Invest each year: ₹1,70,000; Expected yearly return: 13%; Years: 11 years; Tax regime: Old regime; Your tax slab: 30%.
- Formula: Tax saved = min(investment, 1,50,000) × slab rate × 1.04
- Result: Expected value = ₹41,90,530
- Invested: ₹18,70,000
- Yearly tax saving: ₹46,800
Questions people ask
Is the lock-in for each SIP instalment?
Yes, each instalment is locked for 3 years from its own date.
Should I invest in ELSS under the new regime?
Only for its returns, not for tax savings.