ELSS Calculator
What an ELSS (tax-saving mutual fund) SIP can grow to, how much income tax it saves in the old regime, and when each instalment unlocks.
₹12,500 a month in an ELSS fund (₹1.5 lakh a year) for 10 years at an assumed 12% a year could grow to about ₹28,00,449. In the old tax regime at the 30% slab it also cuts your tax by about ₹46,800 a year. Each instalment is locked for 3 years. In the new regime there is no tax saving.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- ELSS (tax-saving mutual fund)
- A mutual fund that invests mostly in shares and lets you cut your taxable income by up to ₹1.5 lakh a year in the old tax regime. Each investment is locked for 3 years.
- Section 80C (now section 123)
- An income-tax rule that lets you cut your taxable income by up to ₹1.5 lakh a year for money put into PPF, EPF, ELSS funds, 5-year post office deposits and similar. Called section 80C in the 1961 Act and section 123 in the Income-tax Act, 2025 (from April 2026). Old tax regime only.
- Lock-in
- The time during which you cannot take your money out. For ELSS it is 3 years from each investment, so a SIP instalment made in March 2027 is free in March 2030.
- Old tax regime
- The older income tax system that allows deductions and exemptions such as 80C and HRA, at higher tax rates. The new regime, the default, has lower rates but few deductions.
- Expected return
- How much you guess your money will grow each year, on average. It is a guess, not a promise: markets rise and fall. Try a low and a high number to see the range of outcomes.
- SIP (Systematic Investment Plan)
- Putting a fixed amount into a mutual fund every month, like a recurring deposit, instead of investing everything at once.
- Tax on share and equity fund profits
- When you sell, the profit is taxed. Held more than 12 months (long-term): 12.5% on profit above ₹1.25 lakh in a financial year. Held 12 months or less (short-term): 20%. A 4% cess is added on top of both.
An ELSS (equity-linked savings scheme) is a mutual fund that invests mostly in shares and gives a tax deduction: up to ₹1.5 lakh a year under section 80C of the 1961 Act, section 123 of the Income-tax Act, 2025. The deduction exists only in the old tax regime.
Tax saved
The deduction lowers your taxable income by what you invest, up to ₹1.5 lakh a year shared with PF, PPF, life insurance and other 80C items. The tax saved is that amount × your slab rate × 1.04 (cess): ₹1.5 lakh saves ₹46,800 at the 30% slab, ₹31,200 at 20% and ₹7,800 at 5%.
If your PF already uses up the ₹1.5 lakh, an ELSS saves no further tax. In the new regime, the default, it saves none at all.
The 3-year lock-in
Every investment is locked for 3 years from its own date. With a SIP, each monthly instalment unlocks 3 years after it was made, so the whole amount is free 3 years after the last instalment. This is the shortest lock-in among 80C options.
Tax on gains
When you sell, gains are long-term capital gains taxed at 12.5% on the part above ₹1.25 lakh a year. Returns are not guaranteed: the calculator's growth rate is an assumption.
Key takeaways
- ELSS deduction: up to ₹1.5 lakh a year, old regime only, shared with other 80C items.
- Tax saved at 30% slab: up to ₹46,800 a year.
- Each instalment locked for 3 years.
- Gains above ₹1.25 lakh a year taxed at 12.5%.
Frequently asked questions
How much tax can I save with ELSS?
Up to ₹46,800 a year at the 30% slab (₹1.5 lakh × 30% × 1.04), in the old regime only.
What is the lock-in period of ELSS?
3 years, counted separately for each SIP instalment.
Can I claim ELSS in the new tax regime?
No. Section 80C (section 123 from April 2026) deductions are available only in the old regime.
Is ELSS better than PPF?
ELSS has a shorter lock-in and can earn more, but returns are not guaranteed and gains are taxed. PPF pays a fixed government rate, tax-free, for 15 years.